AUD/JPY Price Analysis: Bears attack 84.00 on downbeat China GDP, Industrial Production
- AUD/JPY retreats from short-term ascending triangle resistance, refreshes intraday low on mixed China data.
- Receding bullish bias of MACD directs the quote towards 200-SMA.
- Bulls can eye March’s top beyond monthly horizontal resistance.
AUD/JPY takes offers around 84.10, down 0.25% intraday, after China flashed mixed data on early Friday. In doing so, the cross-currency pair steps back from the resistance line of a four-week-old ascending triangle formation.
Read: China’s GDP sees a record expansion of 18.3% YoY in Q4 2020 vs 18.9% expected, AUD/USD unfazed
Not only a lack of strong economics from Australia’s biggest customer but receding bullish bias of the MACD also favors AUD/JPY sellers targeting a 200-SMA level of 83.85. However, the 84.00 threshold offers immediate support to break.
In a case where the AUD/JPY prices drop below 200-SMA, the stated triangle’s support line near 83.15 will be the key to watch.
Meanwhile, an upside break of 84.50 should defy the bearish chart pattern and trigger a fresh rally targeting March’s top of 85.45.
During the rise, February’s top near 84.95 and the 85.00 round-figure may test the short-term AUD/JPY buyers.
AUD/JPY four-hour chart
Trend: Pullback 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.
