Aussie retail sales beat estimates, goes well with AUD/JPY bullish breakout

• Australia April retail sales rise 0.4 percent, beat forecasts.
• AUD/JPY looks north on the back of strong data and bullish technical setup.

The consumption as represented by retail sales rose 0.4 percent in April, beating the forecast of 0.2 percent, the Australia Bureau of Statistics reported on Monday. The previous month's print was 0.0 percent.

Further, the gross operating profits of Australian companies rose 5.9 percent quarter-on-quarter in the first quarter, beating the estimate of a 3.0 percent rise.

The AUD/JPY pair clocked a session high of 83.31 in response to the upbeat Aussie data and looks set to build up on a bullish technical breakout.

1-hour chart

Spot Rate: 83.25

Daily high: 83.31

Daily low: 82.74

Trend: Bullish

The bull flag breakout seen in the hourly chart indicates scope for a rally to 84.36 (target as per the measured height method). The probability of a rally to 84.36 has increased following the release of the upbeat Aussie data.

AUD/JPY Technical Levels

Resistance:  83.32 (Feb. 12 low), 83.67 (100-day MA) 84.00 (psychological level).

Support: 82.74 (session low), 82.53 (50-day MA), 82.18 (May 16 low).