FxWirePro: AUD/JPY extends bearish streak, hits 12-month lows below 87 handle

Chart - Courtesy Trading View 

Spot Analysis:

AUD/JPY was trading 0.38% lower on the day at 87.05 at around 06:20 GMT. The pair is extending bearish streak and has tested levels unseen since Mar 17th 2022. Downbeat Australia PMI data and risk-off market sentiment weigh on the Aussie.

Previous Week's High/ Low: 90.19/ 87.34

Previous Session's High/ Low: 88.37/ 86.92

Fundamental Overview:

Australia PMIs released on Friday came in softer for March and weigh on the Aussie pair amid downbeat sentiment.

Australia’s S&P Global PMIs for March slipped into the contraction figure of under 50.00, missing market forecasts and below prior readings.

Data released earlier today showed Australia's Manufacturing PMI gauge slid to 48.7 versus 50.3 expected and 50.7 prior.

While the Services PMI declined to 48.2 from 50.7 previous readings and 49.7 market forecasts, the Composite PMI dropped to 48.1 compared to 50.6 prior.

Also, comments from US Treasury Secretary Janet Yellen and Chair of the Basel Committee on Banking Supervision also weigh on the market’s mood and drag the pair lower.

On the other side, Japan's core consumer inflation slowed in February, but an index stripping away energy costs hit a four-decade high, data showed on Friday.

With inflation still exceeding the Bank of Japan's 2% target, the data will keep alive market expectations of a near-term tweak to its bond yield control policy, according to analysts.

Major Support and Resistance Levels:

Support - 86.70 (Trendline support), 85.14 (200-month MA)

Resistance - 87.74 (5-DMA), 88.46 (200H MA)

Technical Summary: AUD/JPY trades with a bearish bias. Price action is holding support at rising trendline at 86.70. Momentum is with the bears. Breach at trendline support will drag prices lower. The pair is on track to test 200-month MA at 85.14.