AUD/JPY has been quite impulsive with the bullish gains since it bounced off the support area of 80.50-81.80. There has been certain volatility in this pair as both currencies in this pair has been struggling for gains amid mixed economic reports.
Today, Australia's Home Loans report was published with a greater deficit to -2.2% from the previous value of -0.2% which was expected to be at -1.9%. The worse economic report did not quite impact the gains of AUD against JPY while JPY has found support from economic reports today.
On the JPY side, today M2 Money Stock report was published with an increase to 3.3% from the previous value of 3.1% which was expected to be at 3.2%. Despite the positive economic report, JPY failed to gain momentum over AUD gains which indicates a change in the current market sentiment on the pair.
As for the current market scenario, AUD is expected to gain further against JPY in the coming days until Australia comes up with better economic reports before the AUD Employment Change and Unemployment Rate reports to be published in the coming days.
Now let us look at the technical view. The price is following a bullish trajectory with the gains which has surpassed the dynamic level of 20 EMA with a daily close. As for the current volatility in the market, the price is expected to push higher against the dominant bearish trend of the market and proceed higher towards 84.50 resistance area in the coming days. As the price remains above 80.50 with a daily close, further bullish pressure is expected in this pair.
