AUDJPY trade idea
Consumer inflation expectations in Australia rose to 5% in May from 4.6% in April, the latest data showed. Earlier this month, the Reserve Bank of Australia unexpectedly raised the cash rate by 25 basis points to 3.85 percent, saying further tightening may be needed to ensure inflation returns to target within a reasonable timeframe.
China is scheduled to release its April industrial production and retail sales figures on Tuesday. This may limit upside moves from the trend line.
Additionally, the Japanese goods trade balance and more importantly, national CPI figures due out on Thursday could also have a significant impact on the pair.
Now for trade AUDJPY, our bias is bullish in the short term, but the price must break to the edge of the trend line to enter a buy position in the correction of the price to the level of 90.2
The resistance level for the target will be the strong weekly levels of 91.85 and 92.3. A drop below the 90.2 level will invalidate the bullish scenario.