AUD/JPY Price Analysis: Bounces off weekly support on upbeat Australia Retail Sales
- AUD/JPY pares intraday losses after strong Aussie data.
- Australia Retail Sales jumped past market forecasts to reprint 0.9% growth in May.
- 100-SMA, three-week-old resistance line challenge latest recovery moves.
- Fortnight-long support, 200-SMA add to the downside filters.
AUD/JPY justifies firmer Aussie Retail Sales to reverse daily losses around 94.00 during Wednesday’s Asian session. In doing so, the cross-currency pair bounces off an upward sloping support line from Monday.
That said, Australia Retail Sales reprints 0.9% MoM growth, versus the market consensus of 0.4%, for May.
It should be noted that the 100-SMA level of 94.20 guards immediate recovery of the AUD/JPY pair.
Following that a downward sloping resistance line from June 08, close to 94.50, will be crucial for the bulls to cross.
In a case where the AUD/JPY prices stay firmer past 94.50, the odds of witnessing a run-up towards the previous weekly top near 95.35 and then towards the monthly peak of 96.90 can’t be ruled out.
Alternatively, a downside break of the weekly support line, at 93.90 by the press time, isn’t an open invitation to the sellers as an upward sloping trend line from June 16, close to 93.10, will challenge the further downside.
Even if the AUD/JPY pair drops below 93.10, the 93.00 threshold and the 200-SMA level near 92.75 will act as additional downside filters to challenge the bears.
AUD/JPY: Four-hour chart
Trend: Further recovery expected