FX.co ★ Fundamental Analysis of AUD/JPY for March 22, 2018

AUD/JPY has been quite impulsive with bearish moves today which made the price to reside below 81.50 support area currently. Today, Australia's Employment Change report was published which failed to meet the expectation of 19.8k and resulted in 17.5k, increasing from the previous figure of 12.5k and Unemployment Rate grew to 5.6% which was expected to be unchanged at 5.5%. The downbeat economic report helped JPY to gain impulsive momentum against AUD, without which the price was struggling to get impulsive momentum to break below the strong support of 81.50. On the JPY side, today Flash Manufacturing PMI report was published with a decrease to 53.2 from the previous figure of 54.1 which was expected to increase to 54.3 and All Industry Activity report showed a greater deficit of -1.8% decreasing from the previous value of 0.6% which was expected to be at -1.7%. Despite downbeat economic report, certain impulsive gain on the AUD explains the severe weakness of AUD in the process. To sum up, JPY is expected to gain further momentum against AUD in the coming days until Australia comes up with better economic reports to support AUD gains.

Now let us look at the technical view. The price is currently residing below 81.50 from where it is expected to retest after the daily close and proceed much lower towards 79.00 support area in the coming days. As the price remains below 82.00 price area with a daily close, further bearish bias is expected.