- Aussie dollar after crashing against the Japanese Yen started to consolidate in a range.
- There is a breakout pattern formed on the hourly chart in the form of a triangle.
- Australian Building Permits released recently by the Australian Bureau of Statistics posted an increase of 2.2% in September 2015, more than the forecast of 1.1%.
- Japanese Nomura/JMMA Manufacturing PMI came in at 52.4 in October 2015, higher when compared with the expectation of 52.1.
The AUDJPY pair was crushed recently, and pushed to trade near 85.50. The pair found support near the stated level, and was later seen trading higher. It has now formed a triangle pattern, with the trend line resistance around the 38.2% Fib retracement level of the last drop from the 87.48 high to 85.44 low.
So, it means the triangle resistance area is very critical, as highlighted in the chart attached. A break above it might open the doors for more gains in the short term.
On the downside, the 50 hourly simple moving average can be seen as a support area.
Australian Building Permits
Earlier during the Asian session, the Building Permits, which shows the number of permits for new construction projects was released by the Australian Bureau of Statistics. The forecast was lined up for an increase in permits by 1.1% in September 2015. However, the outcome was above the forecast, as there was a rise of 2.2%.
There was a release in Japan as well recently, as the Nomura/JMMA Manufacturing PMI was reported. The market was expecting it to post a reading of 52.1, but it came in at 52.4 in October 2015.
There was a positive tone noted in AUDJPY, as the pair formed a consolidation pattern and looks set for a break in the near term.