AUD/JPY has been quite corrective and indecisive recently after the false break above 89.40 resistance level. AUD has been quite positive with the economic reports but still struggled to push the price higher against JPY which has been quite negative with the economic reports recently. Today AUD Employment Change report was published with a better than expected figure at 19.8k decreasing from the previous figure of 53.0k which was expected to be at 14.1k and Unemployment Rate report was published with a slight decrease in value at 5.5% which was expected to be unchanged at 5.6%. On the JPY side, today Trade Balance report was published with the worse figure at 0.24T which was expected to be unchanged at 0.31T. As of the current scenario, despite JPY having a negative economic report and AUD having positive employment reports the market is indecisive which does signal that JPY is stronger than AUD in comparison and any upcoming JPY positive economic report is expected to push price lower in the coming days. Though after the positive economic report of AUD it was expected that the currency will push higher impulsively but it did not quite met the expectation and lead the market to the corrective indecisive structure.
Now let us look at the technical view, after the false break above the 89.40 resistance level and impulsive bearish pressure the price has reached the recent swing level today but could not proceed higher. Currently, the price is residing in the middle of the range between 87.40 to 89.40 area whereas of the current bullish rejection price action further bearish pressure is expected towards 87.40 and later if the price breaks below 87.40 with a daily close then we will be looking forward to selling with a later target towards 85.40. As the price remains below 89.40 the bearish bias is expected to continue further in the coming days.
