AUDJPY – Aussie Dollar Testing Resistance Zones Vs Japanese Yen

Key Points

  • The Aussie Dollar after finding support near 85.00 against the Japanese yen traded higher.
  • The AUDJPY pair is currently facing resistance near a couple of trend lines at 85.50 and 85.60 on the hourly chart.
  • Today in Australia, the Westpac Consumer Confidence was released by the Faculty of Economics and Commerce Melbourne Institute.
  • The result was better, as there was an increase from the last reading of 97.3 to 97.4 in Jan 2016.

AUDJPY Technical Analysis

The Aussie dollar struggled earlier this week and traded towards 85.00 against the Japanese yen where it found support. There was a base formed, and later the AUDJPY pair started moving higher towards 85.50.

At the moment, the AUDJPY pair is currently facing a few resistances near two trend lines at 85.50 and 85.60 on the hourly chart. However, the pair is above the 21 hourly simple moving average, which is a positive sign.

If there is a break above the highlighted trend lines, then there could be a push towards the 76.4% Fib retracement level of the last decline from the 56.28 high to 85.00 low.

Australian Westpac Consumer Confidence

Earlier today, the Australian Westpac Consumer Confidence, which captures the level of sentiment that individuals have in economic activity was released by the Faculty of Economics and Commerce Melbourne Institute.

There was a decline of around 3.9% last time, so the market was not looking for any major increase. The end result was stable, as there was an increase from the last reading of 97.3 to 97.4 in Jan 2016. The report added that “Following December’s 3.9% decline, Sentiment was little changed in January, rising just 0.1%. At 97.4, pessimists clearly outnumbered optimists for a second consecutive month in January (100 being the neutral point“.

Overall, the Aussie dollar may trade higher, and there is a real chance of AUDJPY breaking 85.60 for more gains.

Original Article