AUD/JPY chart - Trading View
AUD/JPY was trading unchanged at 85.679 at around 0900 GMT, outlook remains bullish.
Australian dollar stays on the back foot despite strong Retail Sales data. Sour sentiment exerts additional downside pressure.
Data released earlier today showed Australia Retail Sales snapped a three-month downtrend and rose past +0.2% forecast to +1.3%, versus -1.7% prior, during September.
Additionally, the Producer Price Index (PPI) data for the third quarter (Q3) also beat +0.3% market consensus and +0.7% prior readings to +1.1%.
Further, the YoY figures rose to 2.9% versus 3.2% expected and 2.2% previous readouts.
An absence of a deal on US President Joe Biden’s $1.75 trillion stimulus package keeps market sentiment sour.
AUD/JPY has resumed upside, ignores Doji formation on the previous week's candle. Price action is on track to close above 200-month MA.
Pullback in the pair has bounced off weekly cloud 200-week MA support. GMMA shows major trend is bullish.
Support levels - 85.50 (5-DMA), 85, 84.76 (200-week MA)
Resistance levels - 86, 86.25 (Monthly high), 87, 88.02 (61.8% Fib)
Summary: AUD/JPY has resumed upside after a brief pause in the previous week. Scope for further upside. Next bull target lies at 61.8% Fib at 88.02.
