AUD/JPY has been quite corrective with the bullish gains after breaking below the 85.70 price area with a daily close recently. AUD has been quite positive with the economic reports recently which lead the price to gain over JPY but in a corrective manner. Recently AUD Private Capital Expenditure report was published at 1.0% which was expected to be unchanged at 1.1%, Building Approvals report was published with an increase to 0.9% from the previous value of 0.6% which was expected to decrease to -0.9% and Private Sector Credit was published as expected at 0.4% from the previous value of 0.3%. Today AUD AIG Manufacturing Index report was published with an increase to 57.3 from the previous figure of 51.1 which did provide some push to the currency to gain over JPY but struggling to gain momentum. On the JPY side, today Household Spending report was published with an increase to 0.0% from the negative value of -0.3% which was expected to be at -0.2%, National Core CPI report was published with an increase as expected at 0.8% from the previous value of 0.7%, Tokyo Core CPI report was published unchanged as expected at 0.6%, Unemployment Rate was unchanged at 2.8%, Capital Spending was published with significant increase to 4.2% from the previous value of 1.5% which was expected to be at 3.3% and Final Manufacturing PMI was published with slight decrease to 53.6 which was expected to be unchanged at 53.8. As of the current scenario, JPY has been quite positive with the economic reports today which lead to further indecision in the market. AUD has been gaining well with positive economic reports recently but due to certain pressure from the JPY side, the market is expected to be more corrective before the bears take over to push the price much lower in the coming days.

Now let us look at the technical view, the price is currently residing between the corrective range of 84.00 to 85.70 area which is expected to push towards 85.70 resistance area and then push down with the target towards 82.00 support area in the coming days. As the price proceeds higher, the dynamic level of 20 EMA is expected to work as resistance as well to push the price lower. As the price remains below 85.70-86.00 and dynamic level of 20 EMA the bearish bias is expected to continue further.