AUD/JPY Recovery Stalls during Resistance- Monthly Opening Range in Focus

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AUD/JPY Daily Chart

AUD/JPY Price Chart - Daily Timeframe

Technical Outlook: AUD/JPY has been trade within a proportions a well-defined forward pitchfork arrangement fluctuating off a yearly highs with prices trade into insurgency currently during a 38.2% retracement during 86.16. Note that a 200-day relocating normal also comes in only forward of this turn and a tighten above would be indispensable to keep a upside movement going. That said, demeanour for halt support / near-term bullish cancellation during a monthly open during 85.12.

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AUD/JPY 240min Chart

AUD/JPY Price Chart - 240min Timeframe

Notes: A closer demeanour during cost movement highlights a near-term ascending pitchfork formationextending off a Nov lows with a top together (blue) concentration on a 38.2% retracement during 86.16. Look for halt support along a median-line with a reduce together serve highlighting a monthly open during 85.12– A mangle next this turn would be indispensable to symbol resumption of a broader downtrend targeting pivotal support during 84.13/25.

A crack above this high would expected see accelerated gains for a span with such a unfolding targeting a top together of a downslope / 86.77. Bottom line: near-term dissimilarity into this connection insurgency turn leaves a evident allege during risk while next 86.16 with a mangle next this arrangement indispensable to symbol a finish of a recovery. Keep in mind we get a recover of Australia 3Q GDP total tomorrow.

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AUD/JPY IG Client Sentiment

  • A outline of IG Client Sentimentshows traders are net-long AUDJPY- a ratio stands during +1.14 (53.2% of traders are long) – diseased bearishreading
  • Retail has remained net-long given Nov 28; cost has changed 1.1% aloft given then
  • Long positions are 20.8% reduce than yesterday and 8.5% reduce from final week
  • Short positions are 21.5% aloft than yesterday and 21.4% 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. However, traders are reduction net-long than yesterday though some-more net-long from final week. The multiple of stream positioning and new changes gives us a further churned AUDJPY trade disposition from a view standpoint.

See how shifts in AUD/JPY sell positioning are impacting trend- Click here to learn some-more about sentiment!

Relevant Data Releases

AUD/JPY Economic Calendar

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– Written by Michael Boutros, Currency Strategist with DailyFX

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

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