AUD/JPY flashing green despite above-forecast Tokyo CPI

AUD/JPY is reporting gains after the three-day losing streak.
A better-than-expected Tokyo inflation number is likely being overshadowed by an uptick in Japan's jobless rate.

Omkar Godbole FXStreet Contributor

The Japanese yen is trading on the defensive despite better-than-expected Tokyo inflation release.

AUD/JPY, in particular, is reporting modest gains at press time, having registered losses in the previous three trading days.

Tokyo consumer price index increased at an annualized rate of 0.6 percent in February, the data released by the Ministry of Internal Affairs and Communications said on Friday.

The headline figure bettered the forecast of a 0.4 percent increase, which would have been an unchanged reading.

Further, core CPI, which excludes volatile food prices, jumped 1.1 in February, topping the forecast of 1 percent increase.

The upbeat inflation data, however, has failed to put a bid under JPY, possibly because Japan's jobless rate ticked higher to 2.5 percent in January.

Looking forward, JPY selling may gather steam if Caixin's China manufacturing PMI, which surveys small and medium-sized export-oriented units, prints above 50.00, lifting the risk assets higher across the globe.

AUD/JPY Technical Levels

1. R3 79.92
2. R2 79.7
3. R1 79.38
PP 79.16
1. S1 78.84
2. S2 78.62
3. S3 78.3

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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