Key Points
- The Aussie dollar is mostly trading in a range against the Japanese yen, but facing resistance near 79.30.
- If looks like the AUDJPY pair is forming an inverse head and shoulders pattern with resistance near 79.30.
- Today in Australia, the Retail Sales figure was released by the Australian Bureau of Statistics.
- The outcome was better, as there was a rise of 0.6% in Sep 2016, compared with the forecast of 0.4%.
AUDJPY Technical Analysis
The Aussie dollar managed to find bids near 78.45 against the Japanese yen and recovered. There was a nice upside move, but the AUDJPY pair found resistance near 79.30. It looks like there is an inverse head and shoulders pattern forming on the hourly chart with neckline at 79.30.
If the pair manages to break the stated resistance level, there is a chance of it gaining pace towards the upside.
The same resistance (79.30) is also positioned with the 38.2% Fib retracement level of the last decline from the 80.64 high to 78.45 low, so it is a major resistance.
Australian Retail Sales
Today in Australia, the Retail Sales, which is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes was released by the Australian Bureau of Statistics.
The market was expecting a rise of 0.4% in Sep 2016, compared with the previous month. However, the result was better, as there was an increase of 0.6%. The report added that the “trend estimate rose 0.2% in September 2016. This follows a rise of 0.3% in August 2016 and a rise of 0.2% in July 2016. The seasonally adjusted estimate rose 0.6% in September 2016. This follows a rise of 0.5% in August 2016 and a relatively unchanged estimate (0.0%) in July 2016”.
Overall, the Aussie dollar remains supported, and if there is a break above 79.30, the AUDJPY pair may surge higher.
