AUD/JPY is currently quite bullish in nature which leads to more impulsive behavior after breaking above 87.50 resistance area with a daily close. The recent positive economic reports of AUD has provided the currency to sufficient boost to push higher which is expected to continue further in the coming days. Today AUD Trade Balance was published with an increase to 1.75B from the previous figure of 0.87B which was expected to be at 1.42B and Building Approvals report also showed an increase to 1.5% from the previous value of 0.1% which was expected to be negative at -0.9%. Moreover, tomorrow AUD Retail Sales report is going to be published which is expected to show positive value of 0.4% increase from the previous negative value of -0.6%. On the other hand, JPY was quite mixed with the economic reports today which lead to further weakness of the currency in the pair against AUD. Today JPY Monetary Base report was published with a decreased value of 14.5% from the previous value of 15.6% which was expected to have a slight increase to 15.7% and Consumer Confidence report was published with an increase to 44.5 from the previous figure of 43.9 which was expected to decrease to 43.6. As of the current scenario, AUD has been the dominating currency in the pair with the support of the positive economic reports and with a high impact economic report to be published with a positive forecast is an additional benefit for the upcoming gains against JPY. To sum up, AUD is expected to have an upper hand over JPY in the coming days.
Now let us look at the technical view, the price is currently residing above the resistance area of 87.50 with a daily close which was retested today as support before the price surged higher impulsively. Currently, the price is expected to proceed higher towards 89.40 resistance area in the coming days. As the price remains above 87.50 with the daily close the bullish bias is expected to continue further.
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