AUD/JPY shows a bearish trend following Australia’s jobs report.  The increase in jobless was less than expected but the economy shed record jobs. It was the highest jobless rate since September 2015, amid business closures and lockdowns due to the corona virus pandemic.

The jobless rate ticked higher to 6.2% against the expectations for 8.3% and March’s figure of 5.2%.

The number of unemployed rose by 104,500 to 823,300.  Full-time job seekers rose by 115,000 to 622,300, while those looking for only part-time work fell by 10,600 to 200,900. Employment fell by 594,300, the largest drop on record, to 12,418,700, compared with estimates of a 575,000 fall, as full-time employment dropped by 220,500 to 8,656,900, and part-time employment declined by 373,800 to 3,761,800. The participation rate fell to an over 15-year low of 63.5%.

There was a rise of 10 pips in AUD/JPY to 69.15 and then quickly fell to 68.71 after the official data showed Australia’s jobless rate.

As a result, growth-linked currencies like the AUD are likely to remain under pressure. We expect a bearish trend for the pair. If the bear trend continues we could see AUD/JPY breaking 68.730 (S1) and aim for next 68.377 (S2) and if the bull markets take over then we can expect it to break at 69.599 (R1) and aim for 70.115 (R2).

AUD/JPY 4 Hour Chart:

Support: 68.730 (S1), 68.377 (S2), 67.508 (S3).

Resistance: 69.599 (R1), 70.115 (R2), 70.984 (R3).

Australia jobless report has put AUD/JPY and created a favorable environment for short entries.