AUD/JPY bearish trend seems to be quite intact as the break above 83.00 is now considered as a false break. As of the mixed economic reports on the Australian economic reports recently AUD is currently quite weaker than JPY. Today JPY has Monetary Base report to be published which is expected to have a minor fall to 19.6% which was at 19.8 previously and Consumer Confidence is expected to rise to 43.6 which was 43.2 previously. As of the recent JPY economic events like Capital Spending and Flash Manufacturing PMI, the economy has shown a good amount of growth in its figures which did reflect in the chart against AUD. On the AUD side, today HIA New Home Sales report is going to be published which is going to have a major impact as it is a leading indicator of economic health due to new home sales provides information about new purchases and sales of the products which does have direct effect on the economy and this time it is expected to provide a better figure which previously was at -1.1%. As of the current situation of the both currencies in this pair, JPY is expected to gain more against AUD in the coming days due to better economic reports on the Japanese side rather than mixed economic reports on the Australian economy.
Now let us look at the technical view, the price has rejected quite well after the JPY economic reports showed better outcomes than the AUD reports recently. Currently, the price is below the resistance level of 83.00 and as the price remains below the level further bearish move is expected in this pair with the nearest target towards 81.50. If price breaks below 81.50 then we might see a further downward move with a much lower target towards 79.20 area. As the price remains below 83.00 we are in bearish bias until we see a daily close above the level.
The material has been provided by InstaForex Company – www.instaforex.com