FxWirePro: AUD/JPY Daily Outlook

Chart - Courtesy Trading View 

AUD/JPY was trading 0.13% lower on the day at 94.15 at around 11:15 GMT, outlook is bullish. 

Australian dollar unimpressed by firmer Aussie NAB data, the pair remains rangebound above daily cloud support.

National Australia Bank’s Business Conditions data for July rose to 20, versus 15 market consensus and 13 prior. Business Confidence index matched 7 forecasts while rising past 1 prior. 

On the contrary, Westpac Consumer Confidence Index for August eased to 81.2, below 83.8 prior.

On the other side, Bank of Japan (BOJ) policymakers remain concerned about the subdued Labor Cost Index. Higher wage prices are critical to keeping the inflation rate above 2%.

The challenge of keeping the inflation rate above the desired levels despite the prolonged monetary easing will keep the yen bulls on the back foot. 

Support levels:

S1: 93.92 (20-DMA)

S2: 93.15 (55-EMA)

Resistance levels:

R1: 95

R2: 95.75 (July high)

Summary: AUD/JPY is consolidating break above daily cloud. Technical indicators support upside in the pair. Bullish invalidation likely on retrace below cloud.