AUD/JPY - Upbeat Aussie trade & housing data affirms bullish technical reversal

Aussie dollar found some love this Thursday morning after the Australia trade balance figure and building approvals data bettered estimates.

The AUD/JPY pair peeped above the 1-hour 200-MA to print a session high of 87.81.

Australia's trade balance widened to AUD 1,745 million in September vs. AUD 1200 million exp. The previous month's surplus was revised to AUD 873 million from AUD 989 million. Exports rose 3% m/m, while imports growth stalled. Meanwhile, building approvals for September rose 1.5% m/m vs -1.0% exp and 0.4% last.

The positive action in the AUD/JPY on the back of upbeat Aussie data adds credence to the bullish doji reversal (Tuesday's long-legged doji & solid gains on Wednesday) confirmed on the daily chart yesterday.

At the time of writing, the pair is trading at the 1-hour 200-MA level of 87.70. Gains above the key moving average are hard to come, given the 0.27% drop in the S&P 500 futures and the resulting demand for Yen.

AUD/JPY Technical Levels

A break above 87.96 (50-day MA) would open doors for 88.31 (Aug. 2 high) and 88.45 (38.2% Fib R of Aug/Sep rally). On the other hand, a failure to hold above 87.53 (session low) would open up downside towards 87.38 (100-day MA) and 87.00 (zero levels).