AUD/JPY sticking close to 83.00 as Japanese inflation misses in quiet markets

  • Yen non-reactive to inflation figures, which disappointed slightly.
  • Japan's National CPI prints 0.6%, forecasts hoped for 0.7%.

The AUD/JPY is trading flat so far through the overnight session, sticking close to 83.20.

Japanese inflation figures largely came out at expectations, though the headline year-on-year National CPI for April missed expectations, coming in at 0.6% versus the 0.7% forecast. Inflation continues to lag far behind the Bank of Japan's (BoJ) target of 2%, but Yen traders are largely indifferent to the release figures, with Tokyo CPI being a bellwether of national figures, and released two weeks earlier.

The Aussie calendar is clear for Friday's trading, and the pair is set to resume its twist near the 83.00 major handle, and the AUD's correction from May's low of 81.13 could be in jeopardy after this week's employment numbers middled, with Australia adding over 22 thousand full-time jobs in the last month, but unemployment ticking up slightly to 5.6%.

AUD/JPY levels to watch

As noted by FXStreet's own Omkar Godbole, the AUD/JPY is "set to challenge the April high of 84.08 after having created a bullish outside day candle on Wednesday. The ascending 5-day MA and 10-day MA also favor the bulls.

Acceptance above 84.08 would expose the 100-day MA, currently lined up at 84.29. On the downside, a break below 82.18 (previous day's low) would abort the bullish view and could yield a deeper pullback to 81.13 (May 9 low)."

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