AUD/JPY defends 76.4% Fib as NAB business conditions hit record high

The AUD/JPY pair found bids in Asia and moved above 86.60 (76.4% Fib R of 85.45-90.30) after the NAB reported the business conditions index at record highs.

Currently, the cross is trading at the session high of 86.70, having clocked a 2-1/2 month low of 86.46 earlier today. The positive move comes after three consecutive days of decline.

As of now, the market is not paying attention to the NAB measure of wage pressures, which eased back in October.  However, it could become the deciding factor once the investors are done pricing-in the upbeat headline number.

Also on tap is the Chinese industrial production and retail sales figure. AUD, being a proxy for China, is likely to gain altitude if the China data better estimates.

AUD/JPY Technical Levels

The daily chart shows a falling wedge pattern. The wedge resistance and support are 87.12 and 86.32. A break above 86.79 (Nov. 9 low) would open up upside towards 86.94 (5-DMA) and 87.12 (wedge hurdle). On the downside, breach of support at 86.60 (76.4% Fib R of 85.45-90.30) would expose 86.46 (session low) and 86.32 (wedge support).



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