AUD/JPY chart - Trading View
AUD/JPY opens the week's trade with a bearish gap open and keeps losses despite upbeat data from China and Australia.
The pair was trading 0.57% lower on the day at 80.27 at around 07:10 GMT, pausing a 4-day winning streak.
Data released by the National Bureau of Statistics of China showed China's Producer Price Index fell 0.4% year-on-year in December, following November's 1.5% drop and beating the forecast of a 0.8% contraction.
The Consumer Price Index rose 0.7% month-on-month in December, marking a bigger-than-expected rebound from November's 0.6% contraction.
Further, Australia’s final reading of November’s Retail Sales rose past 7.00% forecast to 7.1%. Data has little impact on the pair.
Major trend in the pair is bullish, but overbought oscillators could cause minor pullbacks. Bearish divergence on RSI and Stochs also add some bearish pressure.
Below 5-DMA, the pair finds immediate support at 21-EMA at 79.05. Breach at 21-EMA could change near-term dynamics.
