FxWirePro: AUD/JPY trades weaker, AUD depressed amid downbeat Australia Retail Sales and risk-off sentiment

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.22% lower on the day at 80.14 at around 06:15 GMT, off session highs at 80.44. The pair has paused a 3-day winning streak after Australia December Retail Sales surprised on the downside. Poor data and risk-off sentiment weigh on the pair. 

Data Released: 

• The preliminary readings of Australia’s Retail Sales released early Friday showed a drop to -4.2%, below +7.1% prior. Data marked the heaviest fall since June 2020.
   
• Market sentiment remains sour as virus fears spread amid policymakers in the US, Europe, the UK and Japan, keeping risk assets subdued.
   
• On the other hand, Japan December CPI recovered from -1.3% to -1.2% YoY. While Jibun Bank's January preliminary Manufacturing PMI slipped into contraction with 49.7 print versus 50.5 expected and 50.00 prior.

Technical Analysis:

• Technical bias for the pair is bullish. Pullbacks are likely to be limited.
   
• GMMA indicator shows major and minor trend are bullish. 
   
• RSI is above the 50 mark and MACD supports gains. 
   
• Pullback has held strong support at 21-EMA, weakness only on break below.
   
• Price action is consolidating above 200W MA, resumption of upside eyes 78.6% Fib at 83.79.