- AUD/JPY snaps four-day downtrend, extends recovery from 13-day low.
- Australia Retail Sales rallied in November, Trade Balance eased but Imports and Exports improved.
- 200-DMA, one-month-old support line restricts short-term downside.
- Buyers eye 61.8% Fibonacci retracement but further upside appears elusive.
AUD/JPY remains on the front foot while extending the bounce off a two-week low towards 83.00, up 0.22% intraday, during Tuesday’s Asian session.
The pair recently took clues from Australia’s key data points for stretching the first positive daily performance in five.
Australia’s Retail Sales rose past 3.9% forecasts and 4.9% prior to 7.3% MoM whereas the Trade Balance eased to 9423M versus 10600M expected and 11220M previous readouts, per the latest readings for December. Details suggest that the Exports and Imports both increased from -3.0% respective prior for each to 2.0% and 6.0% in that order.
In addition to the Aussie economics, the 200-DMA and an upward sloping trend line from early December also favor the AUD/JPY buyers to poke the 83.00 threshold by the press time.
Moving on, the 61.8% Fibonacci retracement of October-December downside, around 83.40, will lure the bulls but a five-week-old horizontal area near 84.15-30 will challenge the pair’s further upside.
Should the quote rises past 84.30, the late October’s swing low near 84.60 will act as an additional upside filter during the run-up to the year 2021 peak of 86.25.
Alternatively, the 200-DMA and stated support line, respectively around 82.65 and 82.50, limit the AUD/JPY pair’s short-term downside before directing the bears to the 38.2% Fibonacci retracement level of 81.63.
AUD/JPY: daily chart
Trend: Further advances likely
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.