FxWirePro: AUD/JPY capped below 70 mark, Aussie struggles to extend upbeat CPI led gains

AUD/JPY chart - Trading View 

AUD/JPY erased early gains and was trading largely muted at 69.39 at around 09:55 GMT.

The pair is struggling to extend gains despite upbeat Australia inflation data released earlier today.

Australia's Consumer Price Index rose 2.2% y/y in Q1, beating expectations for a 2% rise, having increased by 1.8% in the Q4 of 2019. 

The quarter-on-quarter figure came in at 0.3%, versus expectations of a 0.2% rise and down from the previous quarter's 0.7%.

The Reserve Bank of Australia's Trimmed Mean CPI or core inflation rose 0.5% quarter-on-quarter in Q1 compared to expectations for an unchanged reading of 0.4%. 

Momentum studies are bullish, however, 'Doji' on Tuesday's candle could see minor pullbacks.

Analysis of GMMA indicator shows major trend is neutral, while minor trend is bullish. Breakout above daily cloud and 55-EMA reinforces upside bias. 

Oscillators are at overbought levels and may cause some retracement. Resumption of upside will see the pair test 61.8% Fib at 70.17. 

Break above 61.8% Fib eyes 110-EMA (70.55). On the flipside, failure to hold above 55-EMA negates any bullish bias. 

Support levels - 68.92 (55-EMA), 68.21 (21-EMA), 68.03 (20-DMA)

Resistance levels - 70.17 (61.8% Fib), 70.36 (21W EMA), 70.55 (110-EMA)