AUD/JPY has retraced 50% of the recent sell-off, eyes Aussie jobs data

AUD/JPY ran into resistance at 87.44 [50% Fib retracement of the drop from 89.42 to 85.45] yesterday before retreating slightly to 87.18 levels in Asia. 

The Aussie data due at 01:30 GMT is expected to show the jobless rate held unchanged at 5.6%. The economy is expected to have added 20K jobs. Traders would also keep an eye on the part time and full time employment numbers. 

Australia employment growth has been far stronger this year than in 2015 and 2016. The leading labor market indicators have continued to strengthen. Thus, the bar of expectations has been set high. The demand for the Aussie dollar would spike if the data shows a big jump in the full time jobs number. 

On the other hand, an unexpected decline in the jobs number may not be well received by the markets. The AUD / JPY cross was last seen trading around 87.26 levels. 

AUD/JPY Technical Levels

A break above 87.44 [50% Fib R] would open doors for 88.02 [Aug 7 high] and 88.23 [Aug 3 high]. On the downside, breach of support at 86.88 [10-DMA] could yield a pullback to 86.67 [5-DMA] and 86.48 [50-DMA].