AUD/JPY holds below 23.6% Fib, eyes RBA statement, Aussie retail sales

AUD/JPY is trading below 87.62 - 23.6% Fib R of 81.78-89.42 ahead of the release of the Aussie data, which is expected to show the consumption as represented by the retail sales data rose 0.2% m/m in June vs. 0.6% in May. 

Focus on Reserve Bank of Australia RBA monetary policy statement

The Reserve Bank of Australia Statement on Monetary Policy (SoMP) is due today at 1:30 GMT. The central bank is more likely to be upbeat about the labor market and economic growth and keep the inflation forecasts unchanged. 

Aussie dollar could find takers if the policy statement is hawkish and vice versa. The currency could also cheer a better-than-expected retail sales release. 

AUD/JPY Technical Levels

The currency pair dropped to a low of 87.36 in the overnight trade before recovering to 87.50 levels. A break above 87.62 [23.6% Fib R of 81.78-89.42] would open up upside towards 87.87 [5-DMA] and 88.22 [10-DMA]. On the downside, breach of support at 87.26 [July high] could yield a sell-off to 87.00 [July high] and 86.64 [July low]. 

The daily RSI is close breaching the 50.00 levels to the downside. That would add credence to the argument that the cross has topped out at 59.42 levels.