AUD/JPY Holds Bullish Edge Despite China’s Economic Wobble

The AUD/JPY showed a minor sell-off after Chinese data. It reached an intraday high of 98.27 and is currently trading around 98.214. The intraday trend remains bullish as long as support at 96.80 holds. 

China’s economy faced significant headwinds in August 2025, with industrial production growing only 5.1% year-over-year, missing the 5.75% forecast and marking the weakest growth this year due to sluggish manufacturing and external pressures. Retail sales disappointed at 3.4% growth, below the expected 3.82%, reflecting persistent low consumer confidence, while fixed asset investment slowed to a mere 0.5% for January-August, dragged down by a 12.9% plunge in real estate. Amid US trade tensions and slowing exports, markets grew cautious, intensifying calls for stimulus, though government trade-in programs spurred notable growth in furniture (18.6%) and appliances (14.3%), offering glimmers of hope.

The pair is trading above 55 and  200 EMA and 365 EMA (long-term) on the 4-hour chart, confirming a bullish trend.  Any violation below 97.90 indicates the intraday trend is weak. A dip to 97.48/97/96.75/96.30/96/ 95.50/95/94.40/93.95/93 is possible.  Immediate resistance is at 98.50, a breach above this level targets 98.75/100/100.42.

Market Indicators (4-hour chart)

CCI (50)- Bullish

Directional movement index - Bullish

Trading Strategy:  Buy

 
It is good to buy on dips around 97.65-70 with SL around 97 for a TP of 100