Fundamental Analysis of AUD/JPY for May 18, 2018

Source: Forex Analysis

AUD/JPY has been quite impulsive with the bullish gains recently which led the price to reside above 83.00 area with a daily close. AUD gained momentum over JPY despite mixed economic reports published recently whereas JPY is under pressure in light of the Bank of Japan’s long-term plan.

Recently, Australia’s Employment Change report was published with a significant increase to 22.6k from the previous negative figure of -0.7k which was expected to be at 19.8k and the Unemployment Rate edged up to 5.6% from the previous value of 5.5%. The mixed readings worked as a fuel to the gains of AUD recently which is expected to keep momentum in the coming days.

On the other hand, today Japan’s National Core CPI report was published with a decrease to 0.7% from the previous value of 0.9% which was expected to be at 0.8%.

As for the current scenario, the downbeat economic report from Japan helped AUD to gain more momentum today whereas recent mixed economic reports on Australia’s Employment was quite enough to sustain the bullish momentum in the pair. To sum up, AUD is expected to gain further over JPY in the future.

Now let us look at the technical view. The price is currently residing above the dynamic level of 20 EMA as well as 83.00 area from where the price is expected to push higher towards 84.50 in the coming days from where if JPY manages to push lower then certain bearish pressure may be observed in the future. As the price remains above 82.00 support area, the bullish bias is expected to continue further.

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The material has been provided by InstaForex Company – www.instaforex.com