AUD/JPY:- A Break Of The Range Will Lead Us To 84
AUDJPY:- Price has been trapped in a sideways market making equal highs and equal lows below the 82.00 weekly resistance level, failing once again to maintain any form of momentum when trading at 81.150. Higher time frame analysis suggests that there is a slow down in market momentum, occurring with multiple wick rejections to the downside, showing a build-up of buying pressure.
If the Australian Dollar continues to show strength, we could be in for yet another test of the higher resistance region of 84.00, upon a break and closure back above the 82.00 level. After being consolidated for 11 days price could see an accelerated move to the upside as the price will often move more aggressively the longer the period of consolidation before it.
Retail sales came out better than expected at 0.4%, in alignment with relatively hawkish statements made by the RBA on Tuesday. We could see the fundamentals and technicals aligning to form the catalyst needed for an accelerated push to the upside and achieve 84.00.