AUD/JPY has been very non-volatile with the bullish gains since it bounced off the 84.00 support area and breached above the 85.70 level. AUD has been quite positive with its gains all over the market since it published positive Employment Change report in the recent week which did help the currency to gain sustainable momentum without any pullback against JPY. The most interesting thing was having JPY no chance to create any counter in the recent days despite JPY having some of its best economic reports results. Today in the morning, JPY had some gains over AUD which did look quite promising off the 88.00 price area after the positive economic reports were published including Prelim Industrial Production grew to 0.6% which was expected to be unchanged at 0.5% and Retail Sales which showed significant rise to 2.2% from the previous negative value of -0.2% which was expected to be at 1.1%. Additionally, today BOJ Core CPI report is yet to be published which is expected to be unchanged at 0.5%. Despite having positive economic reports already JPY failed to sustain the counter move in this pair whereas AUD is taking charge of the momentum already. On the other hand, AUD does not have any economic reports to be published today but tomorrow Private Sector Credit report is going to be published which is expected to be unchanged at 0.4%. Though the economic report is expected to be unchanged any positive shift in the value would result in further impulsive pressure from AUD over JPY. To sum up, AUD is currently expected to dominate JPY further despite any positive economic reports of JPY going to be published or not. Unless JPY comes up with any positive high impact economic report and something to change the market sentiment, AUD is expected to gain further momentum.
Now let us look at the technical view, price is currently residing inside the resistance area of 88.00 to 89.00 area where the price expected to have some corrections progressing higher. The non-volatile price structure that price has been maintaining so far do create some pre-breakout structure which hints about upcoming bullish breakout above 89.00 level in the coming days with target towards 90.50 area. As the price remains above 86.50 the impulsive bullish bias is expected to continue further.
