AUD/JPY trapped in Friday's consolidation as the week fires up

• The Aussie markets are on holidays to start the week and the advantage goes to market sentiment in Monday's Asia session.
• China tariffs, macro data could produce some knock-on action in the AUD as the week winds up.

The AUD/JPY pair is continuing to whip as the Easter holiday extends into Monday, and the pair is back into the 81.70 area after spiking to 81.80 in the Tokyo pre-markets.

The Aussie banks are closed for Monday for the Easter long weekend celebrations and Monday's markets are gearing up for Non-Farm Payrolls week. Japan's Large All Industry Capex released at 2.3 percent, an improvement from the forecast 0.6 percent but still a decline from the previous reading of 6.4 percent, while the Taikan Manufacturing Outlook and Index both came in under forecast, with the Manufacturing Outlook printing a decline to 20 versus the forecast 22, an unexpected decline after the previous reading of 21, while the Manufacturing Index also missed, coming in at 24 versus the forecast 25 and even further below the previous reading of 26.

Market sentiment is likely to fall onto the back foot today with China's sudden imposing of tariffs on American goods despite positive notes last week that both China and the US might be meeting to negotiate a peaceful resolution to the downward spiral towards all-out trade wars. Further knock-on volatility for the Aussie pairs could follow China Caixin Manufacturing PMIs, due at 01:45 GMT Monday.

AUD/JPY Levels to consider

The Aussie is steeply off the 200-day SMA and into bearish territory against the JPY, and further bearish momentum is likely as markets brace for another heavy week of trade headlines. Current support is priced in for the pair at last week's consolidation near 81.50 and a further breakdown could challenge the recent lows at 80.80, while a bullish move from the AUD will need to beat resistance at last week's high just beneath the 82.00 handle, and the recent swing high at 82.50 beyond.