- The yen bulls got triggered as the asset hit the supply zone in an 89.75-90.05 range.
- AUD/JPY hit hard after China unveiled an underperformance in its Retail Sales data.
- The RSI (14) has displayed a loud downside move, which signals more weakness ahead.
The AUD/JPY pair has witnessed a sheer downside move in the Asian session after hitting a high of 90.13. The risk barometer has sensed an intense selling pressure after China reported yearly Retail Sales at -11.1%, significantly lower than the consensus of -6% and the prior print of -3.5%. Also, the Industrial Production has plunged to -2.9%, lower than the estimated and former figure of 0.7% and 5% respectively.
Aussie bulls have been hammered strongly after the cross attacked the supply zone in a range of 89.75-90.05. A failed attempt of establishment above the supply one has been followed by a sheer downside to near 88.91 has shifted the market structure into the favor of bears.
The 20- and 50-period Exponential Moving Averages (EMAs) at 89.36 and 89.30 respectively are expected to overlap each other ahead, which signals a consolidative move going forward.
Meanwhile, the Relative Strength Index (RSI) (14) has displayed a loud move from the bullish range of 60.00-80.00 to a consolidative range of 40.00-60.00.
For further downside, the asset needs to tumble below Friday’s low at 88.18, which will send the asset towards Thursday’s low at 87.31. A breach of the latter will drag the asset towards the round level support at 86.00.
On the flip side, aussie bulls could dictate the asset if it oversteps Monday’s high at 90.13. This will drive the asset towards Wednesday’s high at 91.77, followed by May 6 high at 93.00.
