AUD/JPY Price Analysis: Bears eye 76.00 on weaker than forecast China inflation
- AUD/JPY drops from the eight-week high, flashed on Monday, as China’s CPI, PPI print downbeat figures for October.
- Weekly support line, 200-bar SMA lure the bears.
AUD/JPY drops to 76.35, down 0.47% intraday, during early Tuesday. The pair reversed from the multi-day high the previous day while China’s October month Consumer Price Index (CPI) and Producer Price Index (PPI) offered the latest weakness.
Read: Chinese CPI below 1% YoY first time since March 2017
Considering the unwelcome figures from the largest customer and RSI pullback from the overbought conditions, not to forget the sustained break of the October high, AUD/JPY bears target further downside.
In doing so, the 76.00 threshold can offer immediate support ahead of an ascending trend line from November 02, currently around 75.45. However, any further downside will be capped by a 200-bar SMA level of 74.95.
Alternatively, October’s peak surrounding 76.50 and the recent top close to 77.05 can entertain the intraday buyers during the fresh recovery.
Though, the September 10 high of 77.73 and the August 31 peak surrounding 78.45/50 will challenge the AUD/JPY bulls afterward.
AUD/JPY daily chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
