Fundamental Analysis of AUD/JPY for April 20, 2018

AUD/JPY recently gained bearish momentum in the middle of the price range of 82.00 to 84.50 from where the price is currently expected to have bearish pressure in the nearest days. Recently, AUD Employment Change report was published with an increase to 4.9k from the previous negative figure of -6.3k but it failed to meet the expectation of 20.3k and Unemployment Rate was also published unchanged at 5.5%. As AUD missed the expectation of a significant increase in Employment Change, this had a great impact on the gains of AUD against JPY, leading to impulsive bearish pressure with a daily close yesterday. Today, Japan's National Core CPI report was published with a slight decrease to 0.9% as expected from the previous value of 1.0% and Tertiary Industry Activity also rose to 0.0% from the previous figure of -0.4% but failed to meet the expectation of 0.1%. Due to mixed readings, JPY was unable to provide much pressure over AUD today which lead to certain indecision in the pair currently. As for the current scenario, JPY is expected to sustain its bearish gains over AUD whereas certain correction and volatility may be observed along the way. Until AUD comes up with a better economic report to counter the bearish pressure, JPY is expected to have an upper hand over AUD in the coming days.

Now let us look at the technical view. The price is currently residing above the dynamic level of 20 EMA which is currently holding the price as support in the mid-range between 82.00 to 84.50 area. The impulsive bearish pressure had a greater impact on the recent price action where bears have engulfed the previous consolidation with a daily close yesterday. As the price remains below 84.50 with a daily close, further bearish pressure is expected.

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The material has been provided by InstaForex Company - www.instaforex.com