AUD/JPY – Looking to re-test 80.00 levels

Despite having retreated from the three-month high of 80.02 yesterday, the bid tone around AUD/JPY refuses to die down, with the pair looking to test supply around the psychological level again.

The currency pair was last seen trading around 79.82 levels.

Focus on China data

China GDP, Industrial production and retail sales release is due for release later today. Off late reports have been doing the rounds that China’s economic rebalancing process is reversing. If that is true, we could see a strong industrial production and GDP numbers.

The data could influence broader market sentiment and thus trigger big moves in AUD/JPY, which is largely seen as a risk barometer.

AUD/JPY Technical Levels

A break above 80.17 (200-DMA + weekly classic pivot R1) would open doors for 81.51 (July 15 high) and 82.00 (zero figure) levels. On the lower side, Asian session low of 79.58 could offer support which if breached would shift risk in favour of a cut through 79.29 (5-DMA) and drop to 79.00 levels.