AUD/JPY - Indecision on the charts, focus on China Caixin PMI release

• AUD/JPY daily chart carries a doji candle, which indicates indecision in the market
• Focus on China Caixin PMI

AUD/JPY has moved above 87.00 levels this Wednesday morning, largely on the back of a minor bid wave in the USD/JPY pair.

The daily chart of the AUD/JPY cross shows Tuesday's candle was a long-legged doji. The candlestick pattern shows indecision in the market place. A bullish follow through today would signal that the sell-off from the Oct. 23 high of 89.08 may have ended at 86.69 (Bullish doji reversal). Meanwhile, a break below 86.69 today would revive the sell-off.

Focus on China Caixin PMI

The Caixin manufacturing PMI, which focuses on small and medium sized export oriented units, is expected to show the pace of expansion in the activity remained unchanged at 51.00 in October.

A better-than-expected data could strengthen the bid tone around the AUD and send the AUD/JPY cross above the 100-day MA hurdle of 87.33. On the other hand, a weak data could yield a break below 87.00 levels.

AUD/JPY Technical Levels

Currently, the pair is trading at a session high of 87.14. A move above 87.33 (upward sloping 100-day MA) would open up upside towards 87.94 (Sep. 1 high + 50-day MA) and 88.00 (psychological level). On the other hand, a break below 86.94 (session low) could yield a pullback to 86.69 (previous day's low) and 86.56 (Sep. 6 low).