Fundamental Analysis of AUD/JPY for August 17, 2017

AUD has been stronger than JPY recently with positive economic reports and market sentiment. AUD gained ground on the back of the employment data. On the other hand, JPY had been quite neutral with the economic reports which lead to further weakness of the currency. Today the Australian Employment Change report showed a rise to 27.9k from the previous value of 20.0k which was expected to decrease to 19.8k. Besides, the unemployment rate also decreased as expected to 5.6% which previously was at 5.7%. At the same time, Japan's Trade Balance report was also positive and showed a rise to 0.34T which previously was at 0.09T versus the expected reading of 0.20T. Both currencies had positive reports published today which lead to a corrective structure currently as the market sentiment has become neutral for both currencies now. The indecision after good economic reports from Australia is indicating that JPY is currently on the way for some gains in the coming days as Japan posted a better than expected trade balance report.

Now let us look at the technical view. The price is currently residing at the edge of 87.50 resistance level which is in indecision now. It has already rejected both buyers and sellers by now which does indicate a high probability of counter move in this pair. A daily close above 87.50 will enclose the bullish move towards 89.50 whereas a daily close below 87.50 will signal further bullish move with a target towards 86.30-00 support area.


The material has been provided by InstaForex Company -