Poor Chinese inflation data released over the weekend raised concerns over China's ability to boost the economic growth, denting risk appetite and boosting yen.
- AUD/JPY hit a multi-year low of 80.88, levels not seen since Oct 2012, but was rejected at lows.
- The pair later rebounded higher towards 82 handle, on the back of strong pullback seen in the USD/JPY pair.
- Broader market sentiment will continue to dominate markets amidst a data-light economic calendar today.
- Strong resistance is seen at 81.95 levels, breaks above could take the pair to next hurdle at 82.95 (5-DMA) and then to 83.90 (Jan 8th highs).
- To the downside immediate support might be located 80.88 (Session lows Jan 11) below that at 79.50 (Oct 2012 Level).
Recommendation: Good to buy dips around 81.50, SL: 80.90, TP: 82.95/83.90
