AUD/JPY has reached the resistance level of 86.20 after an impulsive buying off the 83.00 level. After the positive Employment Change and Unemployment Rate report from Australia, AUD has been quite dominating over JPY recently. Today, Japan presented mixed economic reports including Household Spending data which came in at -0.1%, better than the expected -0.7%, National Core CPI was published as expected at 0.4% which previously was at 0.3%, Tokyo Core CPI was worse than the forecast for 0.0% which was expected to be at 0.2%, Unemployment Rate report showed an increase to 3.1% which was expected to be unchanged at 2.8%, Prelim Industrial Production was also worse at -3.3% which was expected to be at -3.1% and Housing Starts showed some improvement and published with a better figure of -0.3% which was expected to be at -1.1%. On the AUD side, today Private Sector Credit report was unchanged at 0.4%. To sum up, due to mixed economic reports from Japan and the unchanged value of AUD today, the pair is currently is in indecision where AUD still has the upper hand over JPY on the back of the ongoing economic conditions in those countries.
Now let us look at the technical chart. The price is currently on the verge of breaking over the resistance of 86.20 but currently in indecision due to mixed economic reports today. If the price breaks above the 86.20 with a daily close, then we will consider buy positions with a target towards 87.50 in the coming days. The bullish bias is expected to continue until price breaks below 84.50 with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com