AUD/JPY has been quite impulsive with the recent bearish gains which lead the price to reside below 82.00 support area with a daily close recently. Though the price has been quite volatile and corrective earlier as the price cleared one of the importance levels in the process, further bearish momentum is expected.
AUD has been struggling with the mixed economic reports recently which lead the currency to weaken further in the process against JPY. Today JPY Prelim GDP report was published with a significant increase to 0.5% from the previous negative value of -0.2% which was expected to be at 0.3%, PPI increased to 3.1% from the previous value of 2.8% which was expected to be at 2.9% and Prelim GDP Price Index performed better than expected at 0.1% though decreasing from the previous value of 0.5% but better than expected value of 0.0%.
On the AUD side, today RBA Monetary Policy Statement was held which was quite neutral with the outcome leading the currency to a certain indecisive phase in the process. Despite the mixed economic reports, economically AUD is a bit struggling to gain momentum in the market which resulted to further bearish pressure in the process.
As of the current scenario, JPY is expected to gain further over AUD resulting further bearish momentum in the process. As JPY performing better sentimentally and fundamentally, it is expected to dominate AUD further in the coming days.
Now let us look at the technical view. The price is currently residing below 82.00 area and dynamic level of 20 EMA with a daily close, which is expected to push the price much lower towards 80.50 area in the coming days. As the price remains below 84.50 area with a daily close, the bearish bias is expected to continue further.
RESISTANCE: 82.00, 84.50
The material has been provided by InstaForex Company – www.instaforex.com