AUD/JPY Price Analysis: Ignores Australia trade numbers to attack key support near 92.00
- AUD/JPY remains pressured towards five-month-old support line despite upbeat Aussie data.
- Bearish MACD signals, sustained trading below 50-DMA keeps sellers hopeful.
- Monthly resistance line adds to the upside filters.
AUD/JPY fails to justify upbeat Australia trade statistics for May as it keeps flirting with the short-term key support near 92.00 during Thursday’s Asian session.
That said, Australia’s Trade Balance rose to 15,965M in May versus 10,725M expected and 10,495M prior. Further details reveal that Exports rose 9.5% from 5.0% prior and Imports grew 5.8% compared to the previous contraction of 0.8%.
The reason for the AUD/JPY pair’s weakness could be linked to its sustained downside break of the 50-DMA, as well as bearish MACD signals and a descending RSI (14), not oversold.
However, the sellers need validation from the aforementioned support line from late January, at 91.90 by the press time.
Following that, a mid-May swing high near 91.20 could probe the AUD/JPY bears before directing them to the May month’s low of 87.30.
On the flip side, a successful break of the 50-DMA level of 92.50 becomes necessary for the pair before challenging the monthly resistance line, at 93.45 by the press time.
Even if the quote rises past 93.45, it needs to surpass April’s peak of 95.74 to please AUD/JPY bulls.
AUD/JPY: Daily chart
Trend: Further weakness 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.
