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  • AUD/JPY is neat 79.30 during early Monday.
  • The weak yearly figure of AU building permits dragged the pair to intra-day low.
  • 79.00 is likely immediate support with 80.70 being nearby resistance to watch.

AUD/JPY trades at the intra-day low of 79.30 during early Monday. The pair fall short of portraying better than forecast January month AU building permits (MoM) as yearly figures dropped more than earlier. The pair gained on Friday as overall risk-on sentiment joined positive news favoring the US-China trade deal.

Monthly announcements from the Australian Bureau of Statistics mention that the January month building permits grew 2.5% compared to -8.1% (revised) contraction for December on a monthly basis. However, YoY growth of the housing market indicator showed -28.6% contraction compared to January 2018.

After the release, the AUD/JPY pair declined to the intra-day low near 79.30 from a level around 79.50 prior to the data.

Off-late, market sentiments have been in favor of risk assets as recently published US GDP data and better chances of the US-China trade deal please bulls. Additionally, the Bank of Japan (BoJ) is a firm supporter of loose monetary policy and prefer weaker Japanese Yen (JPY). As a result, the pair rallied on Friday.

Investors may now observe comments from the BoJ Governor Haruhiko Kuroda when he is to speak in parliament during early Monday in order to determine near-term pair trades. Also, developments relating to the trade pact between the world’s two largest economies may as well provide noticeable pair moves as China is Australia’s largest consumer.

AUD/JPY Technical Analysis

FXStreet Analyst Ross J Burland expects the pair to rise towards 80.70 on Ichimoku Cloud conditions.

The price is currently being resisted by the 100-D SMA and a break there will likely give rise to demand creating full conditions for an Ichimoku cloud long entry point above the psychological 80 figure for an initial target of the 78.6% Fibo level and the confluence with 10th Dec support around 80.70/00. On the wide, 83.60/84.50 are compelling as prior support and resistance levels.  To the downside, trendline support is located a touch below the 79 handle guarding the 61.8% Fibo of the same range around 78.80 as the last defence for the 50% Fibo area around 77.20 which guards the top of the daily cloud at 77 the figure.