AUD/JPY technical analysis: 21-SMA caps immediate upside on H4, all eyes on China data
- 21-SMA, 200-SMA are crucial upside resistances to watch.
- China CPI can give fresh direction.
Despite refraining from declines beneath 75.39, 21-SMA limits the AUD/JPY pair’s immediate upside as it trades near 75.55 during the early Asian session on Wednesday.
Inflation numbers from Australia’s largest customer China will be in the spotlight for fresh direction. While headline consumer price index (CPI) is expected to increase to 2.7% from 2.5% on YoY, producer price index (PPI) may soften to 0.6% from 0.9% during the month of May.
The 21-bar simple moving average (SMA) at 75.62 becomes an adjacent resistance for the quote to clear in order to 38.2% Fibonacci retracement of the latest downturn from May 03, at 76.14.
However, 200-SMA might confine the pair’s further upside at 76.37, if not then 61.8% Fibonacci retracement level of 76.87 and 77.00 round-figure could gain market attention.
Alternatively, a downside break of 75.39 may recall 75.20 and 74.96 on the chart.
Also, 74.50 and the year 2016 low around 72.40 can entertain bears then after.
AUD/JPY 4-Hour chart
Trend: Sideways to negative
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.
