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AUD/JPY stuck at 61.8% Fib, eyes China data

  • AUD/JPY struggles to move above 85.04 (61.8% Fib R).
  • Focus on China trade data.

The follow-through to yesterday's doji candle has been weak so far, shows the pair's struggle to get back above 85.04 (61.8% Fib R of Jun. 6 low - Sep. 21 high). As of writing, the AUD/JPY cross is at 84.95 levels.

The failure to take out 61.8% Fib could be associated with the strong Japanese data released today. Japan Q3 GDP was revised up to 2.5 pct annualized growth. Further, Japanese inflation-adjusted wages rose 0.2 percent in October from a year earlier, marking their first rise since December 2016 in a sign a tight job market may finally be leading to higher salaries.

Still, the Fib resistance could fall if the China trade surplus rises more than expected and the details reveal a rise in imports of commodities like iron ore and copper. China trade data is due at 02:00 GMT.

AUD/JPY Technical Levels

A break below the previous day's low of 84.67 would open doors for 84.50 (Nov. 20 low) and 84.35 (Nov. 27 low). On the higher side, a break above 85.04 (61.8% Fib R of Jun. 6 low - Sep. 21 high) could yield 85.45 (Aug. 11 low) and 85.80 (Dec. 6 high).   

 

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