AUD/JPY Price Analysis: Is a Correction Over?

The Australian Dollar has rallied scarcely 2% opposite a Japanese Yen given a Mar lows with a allege holding cost into near-term connection resistance. We’re looking for a greeting during this concentration with a crack above indispensable to keep a evident long-bias in play. That said, this rhythm indicate could also infer depot for a improvement off a lows- for now a concentration is on insurgency during 82.15.

AUD/JPY Daily Price Chart

AUD/JPY Price Chart - Daily Timeframe

Technical Outlook: In this week’s Technical Perspective, we highlighted a broader opinion for AUD/JPY with a near-term concentration on insurgency into a 82-handle. Price is contrast this operation today. The daily draft isn’t all that considerable here though does prominence some pivotal levels IF cost breaks aloft during 82.52 a 83-handle.

Key support stays with a 61.8% retracement / low-day tighten during 80.57/58– a mangle next this threshold targets, “79.45 and a median-line connection around 78.50s. Note that AUDJPY done a new multi-year low while AUDUSD has not; a inconsistency that mostly manifests itself during incomparable turns in price- keep a tighten eye here.

New to Forex Trading? Get started with this Free Beginners Guide

AUD/JPY 120min Price Chart

AUD/JPY Price Chart - 120min Timeframe

Notes: A closer demeanour during cost movement see’s AUD/JPY trade within a proportions of a well-defined descending channel arrangement with a top together serve highlighting insurgency now around 82.15. Note that a movement form has exhibited a change in function with a oscillator anticipating support forward of 40 after reaching a top levels given mid-March (constructive).

Why does a normal merchant lose? Avoid these Mistakes in your trading

Bottom line: The evident risk is aloft though we’ll be looking for a near-term greeting here during connection resistance. A crack above looks for a widen into 82.52 83– both levels of seductiveness for exhaustion. If we destroy here again, demeanour for halt support during 81.26 corroborated by a reduce parallel, now around ~80.95 (near-term bullish invalidation). Ultimately a mangle next 80.57 would be indispensable to symbol resumption of a broader downtrend.

For a finish relapse of Michael’s trade strategy, examination his Foundations of Technical Analysis series on Building a Trading Strategy

AUD/JPY IG Client Positioning

AUD/JPY Client Sentiment

  • A outline of IG Client Sentiment shows traders are net-long AUDJPY- a ratio stands during +1.44 (59.0% of traders are long) –weak bearishreading
  • Retail has remained net-long given Mar 15th; cost has changed 2.4% reduce given then
  • Long positions are 1.8% aloft than yesterday and 12.8% reduce from final week
  • Short positions are 13.0% reduce than yesterday and 17.9% reduce from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests AUDJPY prices might continue to fall. Traders are serve net-long than yesterday and final week, and a multiple of stream positioning and new changes gives us a stronger AUDJPY-bearish contrarian trade bias from a view standpoint.

See how shifts in AUD/JPY retail positioning are impacting trend- Learn some-more about sentiment!

Relevant Data Releases

AUD/JPY Economic Calendar

Other Setups in Play

– Written by Michael Boutros, Currency Strategist with DailyFX

To receive Michael’s research directly, greatfully sign-upto his email placement list

Follow Michael on Twitter @MBForex or hit him during mboutros@dailyfx.com

About author

Trump could boost global wealth

Trump threats may not stop US offshoring of jobs THE World Bank is forecasting the global economy will accelerate slightly in 2017 after turning in ...