AUD/JPY has been in an impulsive and non-volatile bearish trend after retesting off the 88.00 level recently. AUD is currently quite weaker in comparison to JPY due to recent worse economic reports which helped JPY to gain impulsive bearish momentum in the pair. Recently AUD Employment Change report was published with decrease figure of 3.7k from the previous figure of 26.6k which was expected to be at 17.8k, Unemployment Rate was slightly positive with a decrease to 5.4% from the previous value of 5.5% and MI Inflation Expectation report was published with a decreased value of 3.7% from the previous value of 4.3%. Today, AUD New Motor Vehicle Sales report was published with an increase to 0.0% from the previous negative value of -0.4% which could not provide any support for the currency to gain momentum over JPY. On the other hand, JPY was also struggling with the mixed outcome of the economic reports this week but as the economic reports had minimal impact on the currency it did not hamper the gain against AUD this week. Recently JPY Prelim GDP report was published with a decreased value of 0.3% from the previous value of 0.6% which was expected to be 0.4%, Prelim GDP Price Index report was published as expected at 0.1% increase from the previous negative value of -0.4% and Revised Industrial Production report was published with a slightly less deficit at -1.0% which was expected to be unchanged at -1.1%. As of the current scenario, AUD is being dominated by JPY with mixed economic reports which does indicate the severe weakness of AUD in comparison. Until AUD comes up with any positive economic reports or events in the coming days JPY is expected to gain momentum and push the price much lower in the future.
Now let us look at the technical view, the price was quite indecisive yesterday at the edge of the support area of 85.50-70 which was overtaken with impulsive bearish pressure in the first quarter today. The price is currently residing below the 85.50-70 support area which is expected to work as resistance and push the price much lower in the coming days towards the next support level of 84.00 and later towards 82.00 support area. As the price remains below 88.00 resistance area the bearish bias is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com