AUD/JPY Price Analysis: Reverses from 50-DMA, key resistance line on disappointing Australia data

AUD/JPY takes offers to refresh intraday low, snaps three-day uptrend while reversing from two-week high.
Australia Monthly CPI, Building Permits for July push back RBA hawks.
Sluggish oscillators join U-turn from key technical hurdles and hawkish BoJ bias to tease sellers.

Anil Panchal FXStreet

AUD/JPY takes a U-turn from a two-week high while declining to 94.15 on the downbeat Australian inflation data amid early Wednesday. In doing so, the cross-currency pair also justifies disappointing housing market numbers from the Pacific major while reversing from the 50-DMA and a downward-sloping resistance line from June 19.

Australia’s Monthly Consumer Price Index (CPI) flashed the 4.9% YoY figures for July versus 5.2% expected and 5.4% prior while the Building Permits slumps with -8.1% figure for the said month compared to -0.8% market forecasts and -7.7% figures reported in June.

Given the sluggish oscillators and the recent hawkish concerns about the Bank of Japan (BoJ), the AUD/JPY may extend the latest pullback towards the 94.00 round figure. However, the one-week-old support line near 93.90 may prod the bears afterward.

In a case where the AUD/JPY pair breaks the immediate support, it can easily slump to the 100-DMA level of around 93.25.

Meanwhile, the aforementioned resistance line and the 50-DMA, respectively near 94.50 and 94.70, guard the immediate recovery of the AUD/JPY pair.

However, the pair sellers remain hopeful unless they witness a clear upside break of the previous support line stretched from late March, close to 95.80 at the latest.

AUD/JPY: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	94.36
Today Daily Change	-0.17
Today Daily Change %	-0.18%
Today daily open	94.53

Trends
Daily SMA20	93.82
Daily SMA50	94.7
Daily SMA100	93.18
Daily SMA200	91.91

Levels
Previous Daily High	94.6
Previous Daily Low	94.05
Previous Weekly High	94.18
Previous Weekly Low	92.83
Previous Monthly High	96.84
Previous Monthly Low	91.79
Daily Fibonacci 38.2%	94.39
Daily Fibonacci 61.8%	94.26
Daily Pivot Point S1	94.18
Daily Pivot Point S2	93.84
Daily Pivot Point S3	93.63
Daily Pivot Point R1	94.74
Daily Pivot Point R2	94.94
Daily Pivot Point R3	95.29

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.

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