- The Aussie dollar after making a nice upside move against the Japanese broke down.
- There was a bullish trend line formed on the hourly chart of AUDJPY, which was cleared during the recent break.
- Today, the Japanese Leading Economic Index was released by the Cabinet Office.
- The outcome was a bit on the lower side, as there was a decline from 106 to 100 in Jul 2016.
AUDJPY Technical Analysis
The Aussie dollar after trading as high as 77.34 against the Japanese yen found sellers, and move down. There was a resistance trend line on the hourly chart of the AUDJPY pair, which pushed the price lower towards 76.50.
Moreover, the Aussie dollar sellers also managed to break a bullish trend line formed on the same chart along with the 21 hourly simple moving average.
So, if the pair corrects higher from the current levels, there are chances of sellers appearing.
Japanese Leading Economic Index
Today in Japan, there were a couple of low risk economic releases, including the Japanese Leading Economic Index by the Cabinet Office. It is an economic indicator that consists of 12 indexes such as account inventory ratios, machinery orders, stock prices and other leading economic indicators and was forecasted to post a minor decline.
There was a decline registered from 106 (revised) to 100 in July 2016. However, there was no major impact on the Japanese and it gained traction versus the Aussie dollar. In addition, the Coincident Index, which is a single summary statistic that tracks the current state of the Japanese economy was also released. It posted a minor decline from 112 to 112.1 in July 2016.
Overall, it looks like the AUDJPY pair may trade down towards the 76.20 as long as it is below the 76.80 resistance.