AUD/JPY - Aussie Dollar At Risk of Breakdown Vs Japanese Yen
The Aussie Dollar after a close below 86.60 struggled a lot against the Japanese Yen. The AUD/JPY pair is trading above a crucial 86.00 support, but remains at a risk of a breakdown.
The pair has almost breached the 86.00 support area and poised to extend declines. On the upside, there is a steep bearish trend line with resistance at 86.20 forming on the 4 hours chart.
The pair recently failed to break the 38.2% Fib retracement level of the last decline from the 86.86 high to 86.06 low. Therefore, there are high chances of it breaking 86.00 and declining further.
The pair is also well below the 100 and 200 simple moving average (positioned near 86.50 60). Overall, as long as the pair does not overtake the 86.50 resistance, it remains at a risk of a downside break below 86.00.Japan’s Leading Economic and Coincident Index
Today, Japan saw releases of the Leading Economic and the Coincident index for June 2017 by the Cabinet Office.
The Leading Economic index was forecasted to remain unchanged from the last reading of 106.3. However, the end result was mixed, as the Leading Economic index came in at 105.9, and the last reading was revised down from 106.3 to 104.7. So, there was a net increase of 1.2 points.
Similarly, the Coincident index was forecasted to remain unchanged from the last reading of 117.2. However, the end result was neutral, as the Coincident index came in at 117.1, and the last reading was revised down from 117.2 to 115.8. So, there was a net increase of 1.3 points.
The Coincident index is stable around the BMA (3), which is 3 months backward moving average. And, the index is now well above BMA (7), which is 7 months backward moving average.