AUD/JPY jumps on upbeat China CPI release

The bid tone around AUD strengthened, pushing AUD/JPY to a session high of 85.30 after China CPI bettered estimate. 

Eyes monthly 100-MA

The cross looks set to test the monthly 100-MA located at 85.60 levels. The pair jumped from the session low of 84.93 after the data released in China showed the consumer price index (CPI) rose 2.3% y/y in November compared to the expected print of 2.2%. 

The data docket is thin across the globe. Hence, the spot remains at the mercy of the broader market sentiment. 

AUD/JPY Technical Levels

A break above 85.60 (monthly 100-MA) would open doors for 86.00 (zero figure) levels. A violation there could yield a rally to 86.38 (Apr 22016 high). On the other hand, a breakdown of support at 85.00 would shift risk in favor of a drop to 84.70 (10-DMA) and 84.00 (zero figure).