- AUD/JPY extends pullback from 50-SMA following Australia inflation data.
- Q2 CPI crossed upbeat forecast on QoQ, matches market consensus on YoY.
- Three-week-old resistance line, 200-SMA adds to the upside filters.
- Bearish MACD, risk-off mood back sellers targeting monthly low.
AUD/JPY remains pressured around 80.88, following the U-turn from an intraday high of 81.04, amid early Wednesday. The quote’s latest swing ignores strong Aussie Consumer Price Index (CPI) and RBA Trimmed Mean CPI figures for the second quarter (Q2).
Read: Aussie CPI in line with expectations, AUD steady
In doing so, the quote steps back from 50-SMA amid bearish MACD signals, joining the sour mood in the market, to keep sellers hopeful.
While the weekly bottom surrounding 80.60 can offer immediate support ahead of the monthly low near 79.80, the 80.00 psychological magnet could act as an extra filter to the south.
It’s worth noting that the pair’s weakness past 79.80 will need validation from the yearly low near 79.20 before directing the AUD/JPY bears to late December 2020 tops near 78.80.
Meanwhile, an upside break of 50-SMA level of 81.05 will escalate the bounce off weekly low towards a downward sloping trend line from July 07 near 81.40.
However, a clear upside break of 81.40 enables the AUD/JPY bulls to aim for 200-SMA figures close to 82.70. During the run-up, the 82.00 threshold may offer an intermediate halt.
AUD/JPY: Four-hour chart
Trend: Bearish
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