Upbeat Australian Q4 2015 CPI data will likely make the case for further RBA cuts more difficult to defend, a positive for the Aussie.
- Upbeat Q4 CPI data, which came in at 0.4% q/q above expectations for 0.1% rise saw a good 65 pip spike in AUD/JPY, which hit session highs at 83.35.
- Bulls unable to take the pair higher, 83.35 is strong resistance zone, the pair has edged lower to currently trade at 82.85 levels.
- Techs on 4-Hourly charts point lower, Stochs has bounced off 80 levels and RSI points south.
- 82.66 (4-H 10-DMA) is immediate support on the downside ahead of 82.21 (Jan 25th lows). On the upside immediate resistance might be located at 83.35 (trendline and session highs).
Recommendation: Good to sell rallies around 83 levels, SL: 83.50, TP1: 82.50, TP2: 82.25
