AUD/JPY retakes 100-DMA

AUD/JPY moved back above the 100-DMA (85.38) in the overnight trade as the reflation trade gathered pace following the upward revision of the Q4 US GDP and consumer spending numbers.

The currency pair jumped to a high of 85.61 in the overnight trade and trades around the same level in the Asian session today.

Japanese jobless rate hit the lowest since 1994

The unemployment rate in Japan came in at a seasonally adjusted 2.8% in February. Meanwhile, the core inflation rose to two-year high in February, however, the household spending tanked 3.8%. Meanwhile, industrial production rose 2.0% in February from the previous month (forecast 1.2 percent).

The mixed batch of Japanese data failed to have any material impact on the pair. Moreover, the focus is back on the ‘Trumpflation’ trade, courtesy of the upwardly revised US Q4 GDP (2.1% y/y) and consumer spending (3.5% y/y). Consequently, the offered tone around JPY strengthened.

AUD/JPY Technical Levels

A break above 85.69 (50% of 87.49-83.90) would expose 86.00 (zero levels) and 86.28 (50-DMA). On the downside, breach of support at 85.38 (100-DMA) would open doors for a sell-off to 85.00 (zero figure), under which a major support is seen at 84.35 (Mar 24 low).