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AUD/JPY: teasing contracting triangle breakout on above-forecast Australia CPI

  • A better-than-expected Australia consumer price index (CPI) is pushing the AUD higher across the board.
  • AUD/JPY looks set to confirm a contracting triangle breakout on the hourly chart.

The bid tone around the Aussie dollar strengthened, pushing the AUD/JPY to a session high of 78.56 after Australia’s fourth-quarter inflation numbers bettered estimates.

The consumer price index rose 0.5 percent quarter-on-quarter, beating the expected print of 0.4   percent. The CPI had risen by 0.4 percent in the third quarter. The annualized CPI of 1.8 percent also beat estimates but came in slightly lower than the previous quarter’s figure of 1.9 percent.

Meanwhile, the Reserve Bank of Australia’s (RBA’s) trimmed mean CPI matched estimate of 0.4 percent quarter-on-quarter and 1.8 percent year-on-year.

The above-forecast CPI headline unlikely to trigger an RBA reaction, but is nevertheless boding well  for the Aussie dollar at press time.

The AUD/JPY pair, in particular, could revisit recent highs above 78.00, as the pair is currently trading well above the upper edge of the contracting triangle of 78.34. Put simply, a bull breakout looks like a done deal.

AUD/JPY Technical Levels

AUD/JPY

Overview:
       Today Last Price:  78.55
       Today Daily change:  0.36  pips
       Today Daily change %:  0.46%
       Today Daily Open:  78.19
Trends:
       Daily SMA20:  77.86
       Daily SMA50:  79.59
       Daily SMA100:  80.28
       Daily SMA200:  81.17
Levels:
       Previous Daily High:  78.49
       Previous Daily Low:  77.96
       Previous Weekly High:  78.84
       Previous Weekly Low:  77.5
       Previous Monthly High:  84.05
       Previous Monthly Low:  77.15
       Daily Fibonacci 38.2%:  78.16
       Daily Fibonacci 61.8%:  78.29
       Daily Pivot Point S1:  77.94
       Daily Pivot Point S2:  77.68
       Daily Pivot Point S3:  77.41
       Daily Pivot Point R1:  78.47
       Daily Pivot Point R2:  78.74
       Daily Pivot Point R3:  79

 

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