AUD/JPY is currently quite corrective and volatile in nature which formed a rising wedge on the intraday charts. The mixed economic reports from Japan and Australia made the market sentiment quite confused recently which still exists in the market by now. Today, Japan's Final GDP report was published which showed a decrease to 0.6% from the previous value of 1.0% which was expected to be at 0.7%, Bank Lending also declined to 3.2% which was expected to be unchanged at 3.3%, Current Account report showed positive changes with a rise to 2.03T from the previous figure of 1.52T which was expected to be at 1.65T, Final GDP Price Index was published unchanged as expected at -0.4%, and Economy Watchers Sentiment was also published unchanged at 49.7 which was expected to decrease to 49.5. On the other hand, Australia's Home Loans report showed an increase to 2.9% from the previous value of 1.2% which was expected to decrease to 1.0% and RBA Governor Lowe is currently speaking about short term interest rates and future monetary policies which is expected to be quite neutral in nature. To sum up, Japan's economic reports were mostly very negative in nature which capped the growth of the currency against AUD today. However, AUD could not dominate JPY with its positive economic reports today which does signal that JPY is indeed quite strong than AUD in the market with better sentiment. AUD should come up with positive high impact economic reports in the coming days to dominate the JPY growth.
Now let us look at the technical chart. The price has been very corrective and volatile in nature recently which formed a rising wedge along the way. The price is currently struggling to break over the horizontal resistance level of 87.50 but in the process, some upward fake moves have been observed as well. Currently we will consider sell positions after the price breaks below 86.10-30 support area with a daily close. As the price remains below 88.00 level, the bearish bias is expected to continue further.
