The Australian Dollar (AUD) extended winning streak against the Japanese Yen (JPY) on Wednesday, increasing the price of AUDJPY to more than 86.50 amid release of Australia’s housing data. The technical bias has turned bullish because of a higher high in the ongoing rally.
Technical Analysis
As of this writing, the pair is being traded near 86.55. A hurdle can be seen around 86.70, the swing high of the last major upside rally ahead of 87.00, the psychological number and then 89.37, a major horizontal resistance area.
On the downside, the pair is expected to find a support around 83.77, the intraday low of yesterday ahead of 81.57, a major horizontal support and then 76.78, swing low of the giant bullish pin bar which was emerged last month. The technical bias shall remain bullish as long as the 76.78 support area is intact.
Australia Housing Data
Housing prices across Australia’s capital cities have risen 3.5 per cent for the year to September 30, the weakest growth in more than three years even as the value of all the nation’s dwellings rose to $6.2 trillion. The ABS figures reveal the total value of Australia’s 9.8 million residential dwellings now stands at $6.2 trillion, having increased by $112.1 billion in the quarter. The mean, or midpoint, house price in Australia is now $631,000. Housing auction clearance rates around the country have edged up again in recent months, boosted by record low interest rates. However, first home buyer numbers continue to dwindle, with investors the main drivers of activity in the housing market.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy if we get a valid bearish reversal candle on the daily chart.
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