FXstreet.com (San Francisco) - AUD/JPY trades 20 pips shy of a fresh six-day low posted this Monday following soft China inflation data, below previous month and below market expectations.
The pairing operates in range between 80.94 and 81.36 late in the Asia-Pacific, last quoted around 81.15 vs. 81.35 late Friday, when Yen advanced 1 percent against Aussie on the back of disappointing U.S. employment data.
From a technical standpoint, the retreat seen in AUD/JPY pulled off key 61.8 Fibonacci resistance in the 82.25 price zone, measured from the trough of Oct 2, 2011 to the May 18, 2012 peak. This drop from 61.8 signals that the market could enter a period of consolidation as price rotates around a flat-lining order of moving averages, a perspective better visible on the Weekly timeframe chart.
The downside offers support at 80.56 (50-day EMA), then 80.16 (16 May high), and 79.70 (7 June high). To the upside, short-term rallies may be capped at the now fully horizontal 200-day EMA at 81.48; above there, at the psychological 82.00 figure, then 82.47 (11 April low).
The pairing operates in range between 80.94 and 81.36 late in the Asia-Pacific, last quoted around 81.15 vs. 81.35 late Friday, when Yen advanced 1 percent against Aussie on the back of disappointing U.S. employment data.
From a technical standpoint, the retreat seen in AUD/JPY pulled off key 61.8 Fibonacci resistance in the 82.25 price zone, measured from the trough of Oct 2, 2011 to the May 18, 2012 peak. This drop from 61.8 signals that the market could enter a period of consolidation as price rotates around a flat-lining order of moving averages, a perspective better visible on the Weekly timeframe chart.
The downside offers support at 80.56 (50-day EMA), then 80.16 (16 May high), and 79.70 (7 June high). To the upside, short-term rallies may be capped at the now fully horizontal 200-day EMA at 81.48; above there, at the psychological 82.00 figure, then 82.47 (11 April low).
