Key Points
- The Aussie Dollar is mostly ranging above the 85.70 support area against the Japanese Yen.
- The AUDJPY pair recently broke a bearish trend line with resistance at 86.00 on the hourly chart.
- Today in Japan, the Leading Economic Index for May 2017 (Prelim) was released by the Cabinet Office.
- The outcome was above the forecast, as there was a rise to 104.7 from 104.2 in May 2017.
AUDJPY Technical Analysis
The Aussie Dollar after trading near 87.00 against the Japanese Yen faced sellers and moved down. The AUDJPY declined below 86.50 and traded towards a major support area of 85.70.
Later, the pair formed a base near 85.70 and stated a correction. It moved above the 21 hourly simple moving average and the 23.6% Fib retracement level of the last decline from the 86.98 high to 85.67 low.
It also broke a bearish trend line with resistance at 86.00 on the hourly chart. The next major resistance is near 86.50, which is also the 61.8% Fib retracement level of the last decline from the 86.98 high to 85.67 low.
Japan’s Leading Economic Index
Today in Japan, the Leading Economic Index for May 2017 (Prelim) was released by the Cabinet Office. The market was positioned for a minor rise from the last reading of 104.2 to 104.6.
The actual result was above the forecast, as there was a rise to 104.7 from 104.2 in May 2017. Furthermore, the Labor Cash Earnings figure for May 2017 was released by the Ministry of Health, Labour and Welfare. The result was positive, as there was a rise of 0.7% in May 2017, compared with the same month a year ago.
Overall, the AUDJPY pair might rise towards 86.50, but any further gains would be difficult in the short term.
