Key Points
- The Aussie Dollar made a downside move and traded below 88.00 against the Japanese Yen.
- There is a monster contracting and declining triangle pattern with resistance at 88.00 forming on the hourly chart of AUDJPY.
- Today in Australia, the AiG Performance of Services Index for June 2017 was released by the Australian Industry Group.
- The outcome was above the forecast, as there was a rise in the index from 54.8 to 56.4.
AUDJPY Technical Analysis
The Aussie Dollar after trading towards 89.50 faced sellers against the Japanese Yen, and later started moving lower. The AUDJPY pair declined and broke a few key supports like 89.00, 88.50, 88.00 and the 21 hourly simple moving average.
The pair is currently trading near the 87.60 level and finding bids. There is a monster contracting and declining triangle pattern with resistance at 88.00 forming on the hourly chart of AUDJPY.
The triangle resistance is also near the 21 hourly SMA and the 50% Fib retracement level of the last decline from the 88.24 high to 87.59 low. So, if the pair corrects higher, it is likely to face hurdles near 87.90-88.00.
AiG Performance of Services Index
Today in Australia, the AiG Performance of Services Index for June 2017 was released by the Australian Industry Group. The market was positioned for a minor rise in the index from 54.8 to 55.5.
The actual result was above the forecast, as there was a rise in the index from 54.8 to 56.4. The report added that:
Sales grew at a faster pace than in June, with this sub-index up 5.6 points to 60.3 points. The employment sub-index also indicated robust growth, lifting 3.7 points to 56.9 points. New orders fell by 3.7 points to 55.2 points.
Overall, the AUDJPY pair may correct higher in the near term, but the upside is likely to face resistance near 88.00.
