FxWirePro: AUD/ JPY runs out of steam but maintains bullish outlook

• AUD/ JPY eased slightly on Wednesday after data showed Australian consumer price inflation slowed to a three-year low in August.

• Data from the Australian Bureau of Statistics revealed that the monthly consumer price index (CPI) rose at an annual rate of 2.7% in August, down from 3.5% in July and matching market forecasts.

• The Australian dollar  came off three week high against yen    and was last flat at 98.60.

•The technical outlook remains bullish and points to eventual bigger gains, Fourteen-day momentum is positive, reinforcing the scope for a bigger gains  

• Immediate resistance is located at 99.10 ( 38.2% fib), any close above will push the pair towards 100.00 (Psychological level).

• Immediate support is seen at 98.04 (Daily low) and break below could take the pair towards 97.32 (50% fib).

 Recommendation: Good to buy around 98.50, with stop loss of 98.00 and target price of 99.40