Key Highlights
· Aussie dollar managed to find bids recently near 78.60 vs the Japanese yen and traded higher.
· However, the AUD/JPY pair is facing resistance near a bearish trend line formed on the hourly chart.
· In Australia, the minutes of the Reserve Bank of Australia meetings were published, which pushed the Aussie dollar higher.
· Australian New Motor Vehicle Sales released by the Australian Bureau of Statistics posted a rise of 2.4% in April 2016.
AUD/JPY Technical Analysis
The Aussie Dollar managed to gain strength recently and bounced against the US Dollar. The last hourly candle after the release of the minutes of the Reserve Bank of Australia meetings was very bullish.
However, the AUD/JPY pair is finding it very hard to break a bearish trend line formed on the hourly chart. The pair is finding a lot of offers near the trend line resistance area.
On the downside, the 100 and 200 hourly simple moving averages are positioned, which may act as a support area if the pair moves down.