Key Points
- The Aussie Dollar is about to break higher above 83.40 against the Japanese Yen.
- There is a contracting triangle pattern with resistance at 83.35 formed on the hourly chart of AUDJPY.
- Recently in Japan, the All Industry Activity Index for March 2017 was released by the Ministry of Economy, Trade and Industry.
- The result was below the forecast, as the Activity Index declined by 0.6% (MoM), more than the forecast of -0.4%.
AUDJPY Technical Analysis
The Aussie Dollar traded towards the 81.80 support against the Japanese Yen where it found support. Later, the AUDJPY pair started a recovery, and moved above the 23.6% Fib retracement level of the last decline from the 84.52 high to 81.77 low.
The pair was also able to break the 21 hourly simple moving average at 82.90 and the 38.2% Fib retracement level of the last decline from the 84.52 high to 81.77 low.
At the moment, the pair has formed a contracting triangle pattern with resistance at 83.35 on the hourly chart. It is attempting a break above 84.35-84.40. Once it succeeds, we can see further gains in AUDJPY towards the 83.80 level or eve 84.00.
Japanese All Industry Activity Index
Recently in Japan, the All Industry Activity Index for March 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for a decrease of 0.4% in the index in March 2017, compared with the previous month.
The outcome was below the forecast, as the Activity Index declined by 0.6%, more than the forecast of -0.4%. The reading was also well below the last increase of 0.7%. Today, the Nikkei Manufacturing PMI was also reported, which posted a disappointing reading compared to the last 52.7, and came in at 52.0.
Overall, the AUDJPY pair may soon break the 83.40 resistance and trade higher may be towards 83.85.
