AUD/JPY is trading around 83.50 during the Asian session on Monday, as the gross domestic product (GDP) data of Japan's July-September quarter disappoints. Further, upbeat Chinese Retail Sales and Industrial Production data underpin the sentiment around the aussie.

Last week currency markets were choppy, with the US dollar marginally softer and AUD crosses firming. A stable risk appetite is expected to support the AUD/JPY in the near term.

Japan's Q3 GDP contracted 3.0% annually and the quarterly figure dropped by 0.8%, worse than economists' estimate of a 0.2% contraction. The data added that private consumption, which makes up more than half of the economy, fell 1.1%, versus a 0.5% decline expected by economists.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

AUD/JPY flirts with 83.50 during early Monday morning in Asia. In doing so, the cross-currency pair holds onto the corrective pullback from the 50-day EMA, as well as an upside break of a descending trend line from November 1.

As RSI conditions do back the latest recovery moves, the quote is up for challenging a one-month-old horizontal hurdle around 83.80-85.

However, a 23.6% Fibonacci retracement (Fibo.) of August-October upside and October 22 low, respectively around 84.30 and 84.60, will challenge any further upside past 83.85.

In a case where the AUD/JPY bulls keep reins past 84.60, the 85.50 and the 86.00 levels may test the run-up towards the previous month’s top of 86.25.

Alternatively, a downside break of the previous resistance and the 50-day EMA convergence around 83.15-10 stops the pair buyers. Though, 38.2% Fibo. level near 83.00 will test the bears before allowing entry.

AUDJPY being supported by EMA50 in daily

Nov 15 2021