• AUD/JPY strengthened on Tuesday as increased risk sentiment and upbeat Australian retail sales bolstered Australian dollar.
• Australian retail sales increased more than predicted in August following a dismal July, owing to warm weather that boosted early spring spending, probably reflecting greater consumer spending due to recent tax cuts.
• The Australian Bureau of Statistics (ABS) reported that retail sales climbed by 0.7% in August, following a 0.1% gain in July.
• By 05:47 GMT, Australian dollar was up 0.66% against the yen to 99.66, highest level since September 27th.
• Immediate resistance is located at 100.31 (23.6% fib), any close above will push the pair towards 101.10 (Higher BB).
• Immediate support is seen at 99.21(5 SMA) and break below could take the pair towards 98.57 (38.2% fib).
Recommendation: Good to buy around 99.80, with stop loss of 99.00 and target price of 100.60
