AUD/JPY is currently residing in a corrective volatile structure which seems to widen in a range. Recently, AUD has been affected by negative reports, so AUD lost ground against JPY. On the other hand, Japan presented mixed economic reports today. National Core CPI came in at 0.3%, a bit down than the forecast a 0.4% gain, but the fresh score was better than the previous result at 0.2%. Tokyo Core CPI was positive at 0.1% which was expected to be 0.0% and SPPI also showed a figure of 0.7%, down than the consensus for a 0.9% rise and 0.8% in the previous month. So, some Japan's economic reports showed weak data today. Nevertheless, despite the negative reports JPY has managed to rise against AUD today. If JPY could end the week with such domination, we may see more gains in the future.
Now let us look at the technical chart. The price is currently at edge of breaking below the level 83.00. As of the volatility in the market it would be better to wait for a daily close today before we take a decision on buy or sell position for this pair. Currently, the bias is 60% bearish and 40% bullish. If the price breaks below 83.00 with a daily close today, then we will expect the price to move down towards 81.50 support level. Otherwise, if the price rejects the bears and closes above 83.00 level, then we will consider buy positions with a target at 84.50 resistance level.
