AUD/JPY has been quite impulsive with the bullish gains recently which lead the price to push off the 81.50 support area to residing at the edge of the 83.50-84.50 resistance area. Despite the recent positive economic reports, JPY failed to gain momentum against AUD which does indicate the strength of AUD in the process.
Recently, JPY Bank Lending has increased to 2.2% from the previous value of 2.0% and Current Account has exceeded expectations with the rate of 1.85T which was expected to be at 1.18T. Moreover, PPI was also published with an increase to 2.8% as expected from the previous value of 2.7%. Today, JPY Revised Industrial Production report is going to be published which is expected to be unchanged at -0.2%.
On the other hand, recently, AUD MI Inflation Expectation report has been published with a decrease to 3.9% from the previous value of 4.2%. The worse economic report did not quite impact the gains of AUD in the process leading to higher grounds.
As of the current scenario, AUD is expected to gain further momentum in the process until any negative report of AUD or better than expected JPY economic report consistently unfolds in the coming days. To sum up, AUD is expected to gain further against JPY in the process.
Now let us look at the technical side. The price is currently residing at the edge of the 83.50-84.50 resistance area from where it is expected to reject bulls with certain bearish pressure to push the price lower in the process. The pair has been ranging between 80.50 to 84.50 since March 2018 and until a daily break above or below the area occurs, no definite pressure on trend is expected and the range is expected to continue further. As the price remains below the 83.50-84.50 area, the bearish bias is expected to continue.
