AUD/JPY has been quite bearish recently after bouncing off the 89.00 resistance area. AUD has been quite negative with the economic reports recently which helped JPY to gain momentum and push the price lower below 88.00. Recently published AUD CPI and Trimmed CPI was published with worse than expected result which directly affected the growth of AUD. Today AUD PPI report was published with decreased value to 0.2% from the previous value of 0.5% which was expected to be at 0.4%. On the other hand, today JPY National Core CPI report was published unchanged as expected at 0.7% and Tokyo Core CPI report was published with an increase to 0.6% which was expected to be unchanged at 0.5%. As of the current scenario, JPY was quite stable with the economic reports whereas AUD worse economic reports are making the currency lose more grounds in the pair. To sum up, JPY is expected to have an upper hand over AUD until AUD comes up with positive economic reports to push higher against JPY in the future.
Now let us look at the technical view, the price is currently residing below the 88.00 resistance area whereas dynamic level is also expected to attract the price towards the level before pushing down lower towards 85.50-70 support area in the coming days. As the price remains below 89.00 resistance area the bearish bias is expected to continue further.
