AUD/JPY: Eyes break above 82.00 after solid Aussie retail sales release

• Aussie retail sales blow past expectations.
• AUD struggles to gain altitude, courtesy of weaker-than-expected China PMI and Aussie building permits figure.
• S&P 500 futures report losses, could weigh over Yen crosses.

Australia February retail sales rose 0.6 percent, beating the estimated figure of 0.3 percent by a wide margin.

Still, the pair is struggling to break above 82.00 in a convincing manner. Moreover, the upside is likely being capped by a 6.2 percent month-on-month drop in Aussie February building permits. Also, China Caixin services PMI showed the pace of expansion in the activity slowed to 52.3 index points in March vs expected print of 54.5 index points.

As of writing, the currency pair is trading around 82.00. The S&P 500 index futures are reporting a 0.30 percent drop. Thus, Yen cross may have a hard time exploring the upside. That said, the technical set up indicates scope for short-term bullish price action.

AUD/JPY Technical Levels

Previous day's close added credence to the bullish RSI divergence and bullish 5, 10 MA crossover seen on the daily chart and will likely yield a rally to 82.58 (March 21 high). A break higher would expose resistance at 83.32 (Feb. 14 low). On the downside, a move below 81.41 (10-day MA) could yield a pullback to 80.83 (April 2 low).  A close lower would abort the bullish view and allow a re-test of 80.50 (March 23 low).