AUD/JPY Price Analysis: Battles five-week-old hurdle on upbeat China inflation data
- AUD/JPY bounces off intraday low as China posts biggest CPI jump since August 2020.
- Momentum line, sustained break of 61.8% Fibonacci retracement level favor bullish bias.
- 100-DMA, September’s high add to the upside filters before 200-DMA.
AUD/JPY wavers around 81.50, despite the latest rebound from intraday low, during early Thursday.
The risk barometer pair recently benefited from upbeat China Consumer Price Index (CPI) and Producer Price Index (PPI) data but a challenge to sentiment joins descending trend line from November 01 to probe buyers.
Read: AUD/USD pares intraday losses below 0.7200 on China inflation but yields test bulls
That said, the quote’s sustained trading beyond 61.8% Fibonacci retracement (Fibo.) of August-October upside joins upward sloping Momentum line to keep buyers hopeful of overcoming the immediate trend line resistance, near 81.60 at the latest.
Though, the 100-DMA and September’s high, respectively around 81.80 and 82.00, will act as additional resistances before directing the AUD/JPY prices to the 200-DMA level of 82.80.
On the flip side, pullback moves will initially eye the 61.8% Fibo. level of 81.08 and the 80.00 threshold before convincing the bears.
Following that, a broad horizontal area from August 20, between 78.60 and 78.85, will test the AUD/JPY sellers.
AUD/JPY: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
