Technical Bias: Neutral
- Aussie Dollar after correcting higher facing an important resistance around 91.80-92.00.
- Japanese Yen continues to weaken and might head lower in the near term.
- The Japanese Gross Domestic Product released by the Cabinet Office registered a decline of 0.4% in the second quarter of 2015, which was a better compared with the forecast of a 0.5% fall.
The AUDJPY pair after a decline towards 90.40 support area against the Japanese Yen found support and traded higher. There is a bearish trend line formed on the 4-hours chart, which is acting as a short-term resistance for the pair. Only if buyers manage to clear it, more gains are possible.
One encouraging sign for buyers is the fact that the pair is above the 100 and 200 simple moving average on the 4-hours chart.
On the downside, the 100 SMA (H4) could act as a support, followed by the 100 SMA. There is also a support trend line formed on the 4-hours chart.
Earlier during the Asian session, the Japanese Gross Domestic Product, representing the monetary value of all the goods, services and structures produced in Japan within a given period of time was published by the Cabinet Office. The market was expecting a decline of 0.5% in the GDP in the second quarter of 2015, compared with the preceding quarter. However, the result was above the forecast, as the Japanese GDP posted a decline of 0.4%. This was disappointing, and cannot be considered on the positive side.
Furthermore, when we look at the yearly change, then there was a fall of 1.6% in GDP in the second quarter of 2015, compared with the same quarter a year ago. Overall, the data was mixed, but weighed on the Japanese Yen in the short term.
We can attempt a buy trade if the AUDJPY breaks and settles above the highlighted trend line.