AUD/JPY has been impulsively bearish in nature today in a non-volatile trend structure. AUD and JPY have been quite competitive with recent gains. JPY has shown the impulsive nature today in light of recent downbeat economic reports. Today, Australia presented the Retail Sales report with a decline to -0.6% from the previous drop of -0.2% which was expected to be positive at 0.3%. On the plus side, Trade Balance report was published with a significant proficit of 0.99B from the previous figure of 0.81B which was expected to be at 0.88B. On the other hand, today Japan does not have any economic reports or events to impact the market with. Tomorrow, Japan's Average Cash Earnings report is going to be published which is expected to show a positive result with an increase to 0.5% from the previous value of -0.6% and Leading Indicators is also expected to show an increase to 107.2% from the previous value of 105.2%. As for the current scenario, AUD fell immediately following the negative Retail Sales report from Australia that resulted in strong bearish pressure today. Despite lack of economic reports to drive JPY gains today, the Japanese currency has proved itself strong enough to advance further in the coming days against AUD.
Now let us look at the technical chart. The price has now been trading with an impulsive bearish momentum breaching below the dynamic level of 20 EMA. The daily candle has already engulfed the overall price action of the week which does signal that a daily close with the current structure today will lead to further bearish pressure towards 85.70 support area in the coming days. As the price remains below 89.10 resistance level, the bearish bias is expected to continue further.
