AUD/JPY has been quite impulsive with the bullish gains recently. As a result, the price is currently holding at the edge of 89.00 resistance area from where the price is expected to show some bearish intervention. AUD has found suport from better than expected Employment Change report at 34.7 which was expected to be at 13.2k and from a slight change in the Unemployment Rate to 5.5% from the previous value of 5.4%. On the other hand, Japan presented a series of downbeat economic reports this week, so that AUD has been more impulsive with the gains. Today, no economic report have been published in Japan and Australia but on Monday, the Bank of Japan is going to release Policy Rate report along with Monetary Policy Statement. The Bank of Japan Press Conference is also due. These events are expected to help JPY to recover against AUD in the coming days. As for the current scenario, a counter move from JPY is expected against AUD which might lead to bearish pressure in the pair for the coming week.
Now let us look at the technical chart. The price is residing below the resistance area of 89.00 from where the price bounced off impulsively with some strong bearish pressure. Though the recent price action was bullish, the 89.00 area has been quite successful bringing the price down earlier. This is strong evidence that something similar could happen in this case. Besides, a pullback is expected to be shorter this time. As the price remains below 89.00 area, the bearish bias is expected to continue with a target towards the dynamic level of 20 EMA before pushing higher again in the future.
