Key Points
- The Aussie Dollar declined from the 89.20 level against the Japanese Yen towards 87.70.
- There was a break below a major trend line and support at 88.80 on the hourly chart of AUDJPY.
- Today in Japan, the Coincident Index for July 2017 was released by the Cabinet Office.
- The outcome was below the forecast, as the index declined from the last revised reading of 117.1 to 115.8.
AUDJPY Technical Analysis
The Aussie Dollar attempted to move above the 89.20-30 resistance area against the Japanese Yen on a couple of occasions, but failed. As a result, there was a downside move, and the AUDJPY pair broke the 88.50 support along with the 21 hourly simple moving average.
Also, during the downside move, there was a break below a major trend line and support at 88.80 on the hourly chart. The pair traded as low as 87.65 and currently correcting higher.
An initial resistance is around a bearish trend line at 88.22, followed by the 50% Fib retracement level of the last decline from the 89.15 high to 87.65 low.
Japan’s Coincident Index
Today in Japan, the Coincident Index for July 2017 was released by the Cabinet Office. The market was positioned for a rise of around 1 point from the last reading of 115.5.
The actual result was outcome was below the forecast, as the index came in at 115.8, and the last reading was revised up from 115.5 to 117.1. So, there was a net decline of more than 1 point instead of an increase. On the other hand, the Japanese Leading Economic Index posted a rise from the last revised reading of 104.2 to 104.6.
Overall, the AUDJPY may correct towards 88.40-60, but it remains sell on rallies in the short term.
