AUD/JPY jumps to 200-hour MA, mixed Japanese data and uptick in S&P 500 futures weigh over yen

• AUD/JPY is gaining altitude, possibly tracking the uptick in the S&P 500 futures. 
• Japan's jobless rate ticked lower, but sustained labor market tightening isn't translating into higher wage-price inflation. 
• Australia's housing credit growth in February was lowest on record. 

AUD/JPY is currently trading at 78.46, having tested the 200-hour moving average (MA) of 78.58 soon before press time.  

The anti-risk Japanese yen is being offered, possibly due to signs of risk reset. As of writing, the futures on the S&P 500 index are reporting a 0.16 percent gain, having jumped 0.36 percent yesterday. The stock markets in the US and across the globe had come under pressure earlier this week on US recession fears. 

Possibly adding to the upward momentum in AUD/JPY is the mixed bag of Japanese data released earlier today. While Tokyo consumer price index for March bettered estimates with a 0.9 percent year-on-year rise, the retail trade rose just 0.4 percent, missing the forecast of 1.3 percent jump by a big margin. 

Further, February’s industrial production dipped 1 percent year-on-year, following a 0.3 percent rise in the previous month and the jobless rate declined to 2.3 percent from the 2.5 percent expected. The labor market tightening, however, isn't translating into higher wage-price inflation, leaving the BOJ miles away from its 2 percent inflation target. The drop in the jobless rate, therefore, failed to put a bid under the JPY. 

Australia's housing credit growth rose 0.3 percent in February, as expected, the data published by the Reserve Bank of Australia at 00:30 GMT showed. The annualized growth rate, however, was just 4.2 percent - the slowest annual rate of growth since 1977. The weak housing data could be the reason for AUD/JPY's failure to cut through the 200-hour MA of 78.58. 

The MA hurdle, however, could be scaled in the next few hours if the equities post strong gains, leading to a drop in funding currencies like JPY. 

Technical Levels