AUD/JPY: testing 86.20 key support post retail sales in risk-off trade

AUD/JPY has seen a sharp drop in Tokyo on the back of news that N.Korea firing four missiles into the East Sean with three landing in Japan's exclusive economic zone. Other news from China over the weekend reported that the nation reduced its growth target which is another weight on the major risk-off pair. 

• Japan PM Abe protests North Korea missile tests
• Weekend news wrap: Trump, European politics/banks and China

From the data front and domestically, Australia's retail sales for the month of January came at +0.4% vs 0.4% expected and -0.1% last. The Aussie was offered by roughly 10 pips on the release and printed fresh lows and the cross moved by roughly the same margin. 

• Australia's Jan retail sales comes in line with expectations

AUD/JPY levels

AUD/JPY is testing the bull's commitments at 86.20 guarding the 86.00 level within the 4hr charts bullish H&S pattern and broader bullish trend from 72.37 2016 lows. The price has broken the daily 50 sma at 86.32 and targets 85.80 and recent triple bottom Feb lows.  Analysts at ANZ offered their forecasts for AUD/JPY as March 85.1, June 82.8, Sep 80.5 and 78.2 for Dec 2017.

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