AUDJPY Technical Forecast


A weaker than expected fourth quarter CPI inflation figures has made an impact on the AUDJPY pair. The 31 January AUDJPY Technical Forecast reveals what level the pair is currently trading.

31 January, GKFX – The Aussie dollar took a beating across the board after the Australia Bureau of Statistics reported a weaker than expected fourth quarter CPI inflation figures.

Key Quotes

  • Aussie offered following the CPI release.
  • AUD/JPY prints session lows below 4-hr 200-MA.

The AUD/JPY cross fell from 88.15 to 87.65 post-CPI release and was last seen trading at the 4-hour 200-MA level of 87.74.

The consumer price index (CPI) rose 0.6 percent in the December quarter and 1.9 percent on an annual basis, the ABS said today. The markets had been expecting a 0.7 percent inflation print for the fourth quarter and a 2.0 percent annual reading.

Also, the RBA’s trimmed mean rose 0.4 percent on quarter and 1.8 percent on an annual basis, again missing the market forecasts of 0.5 percent and 1.9 percent, respectively. The trimmed mean stays just below RBA’s 2%-3% y/y (flexible) target band. So, the central bank is unlikely to join the hawkish G7 bandwagon anytime soon.

That said, the AUD/JPY cross looks set to test 87.21 – double top neckline support – in the short-run.

31 January AUDJPY Technical Forecast

A break below 87.71 (Jan. 25 low) would open up downside towards 87.21 (double top neckline). A bearish reversal would be confirmed if the pair closes below the neckline support, thus allowing for a sustained move lower to 86.44 (200-day MA).

On the other hand, a move above 88.51 (Jan. 26 high) would amount to a violation of the falling top pattern. So, bears could be forced to unwind their shorts, leading to a sharp move higher to the resistance zone of 88.80-89.10.

Disclaimer

This article 31 January AUDJPY Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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