Key Points
- The Aussie dollar recently found buyers near 85.25 against the Japanese yen and jumped higher.
- The AUDJPY pair broke a couple of important resistances, including 85.50 and a bearish trend line on the hourly chart.
- Today in Australia, the AiG performance of the Mfg Index was released by the Australian Industry Group.
- The result was not exciting, as there was a decline in the index from the last reading of 55.4 to 51.2 in Jan 2017.
AUDJPY Technical Analysis
The Aussie dollar after a nasty decline towards 85.20 support area found buyers against the Japanese yen, and started moving higher. During the upside, the AUDJPY pair broke the 85.50 resistance level and a bearish trend line on the hourly chart.
The pair also settled above the 21 hourly simple moving average and the 38.2% Fib retracement level of the last decline from the 87.09 high to 85.25 low.
So, there is a high chance that the pair may continue to move higher, and could even break the 50% Fib retracement level of the last decline from the 87.09 high to 85.25 low for more gains.
AiG performance of the Mfg Index
Today in Australia, the AiG performance of the Mfg Index, which presents business conditions in the Australian manufacturing sector was released by the Australian Industry Group. The market was not looking for any major decline in Jan 2017, compared with the last reading of 55.4.
However, the result was a bit lower, as there was a decline in the index from the last reading of 55.4 to 51.2 in Jan 2017. The report added that “Three of the seven seasonally-adjusted manufacturing sub-indexes expanded in January with two sub-indexes stable and two contracting. In a positive indicator for near term growth, new orders continued to expand (53.7 points)”.
Overall, the Aussie dollar remains in an uptrend, and any corrections towards 85.80 may find support against the Japanese yen.
