AUD/JPY - 3-day rally stalled at 87.00 ahead of China data release

The rally in the AUD/JPY from the low of 85.85 (Mar 9 low) appears to have run out of steam in the Asian session today at 87.00 levels. The cross rallied for the last three trading sessions, largely due to the weakness in the Yen. 

Hovers at key trend line hurdle

Trend line drawn from Feb 16 high and Mar 2 high offers resistance around 86.94 levels. 

Eyes China data

Chinese domestic consumption as represented by the retail sales data is seen rising 10.5% y/y in January compared to December figure of 10.9%. Meanwhile, industrial production is seen rising to 6.2% y/y from 6.0%. 

An upbeat data could strengthen the bid tone around the Aussie dollar. 

AUD/JPY Technical Levels

A break above 87.00 (zero figure + Asian session high) would open doors for 87.48 (Mar 2 high) and 88.00 (zero figure) levels. On the other hand, a breakdown of support at 86.69 (Feb 22 low) could yield 86.26 (50-DMA) and 86.00 (zero figure).