Weekly Technical Perspective on AUD/JPY

In this array we scale-back and take a demeanour during a broader technical design to benefit a bit some-more viewpoint on where we are in trend. Here are a pivotal levels that matter on a weekly draft for a Australian Dollar vs a Japanese Yen (AUD/JPY). Review this week’s Strategy Webinar for an in-depth relapse of this setup and more.

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AUD/JPY Weekly Price Chart

AUD/JPY Price Chart - Weekly Timeframe

Notes: AUD/JPY has continued to trade within a well-defined operation for scarcely 10 weeks now with major eventuality risk this week expected to be a matter for a mangle and to offer clarity on a medium-term cost outlook. Key support rests during 81.58/97 where a 2015 2017 lows intersect on basic trendline support fluctuating off a 2016 lows. Range insurgency stands during a 2017 open / 100% prolongation during 84.25/71.

A downside mangle of this operation targets a 1.618% prolongation of a 2017 decrease during 79.45. A topside crack of this operation (alongside a mangle above a tentative RSI insurgency trigger) eyes successive connection insurgency objectives during ~85.50s where a 52-week relocating normal converges on former slope support, incited resistance.

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Bottom line: We’re looking for a cost dermatitis for guidance. From a trade standpoint, I’ll preference vanishing strength near-term though honour this operation with a weekly tighten indispensable to countenance a mangle on possibly side. Keep in mind this is deliberate a ‘risk sensitive’ span – design sensitivity this week with a seductiveness rate decisions from a FOMC BoJ (Bank of Japan), Australian practice information and a Nuclear Summit between President Trump and North Korean Leader Kim Jung Un, expected to expostulate marketplace perspective in a days ahead.

AUD/JPY IG Client Positioning

AUD/JPY Client Sentiment

  • A outline of IG Client Sentiment shows traders are prosaic AUD/JPY- a ratio stands during +1 (50.0% of traders are long) – neutral reading
  • Long positions are 5.0% reduce than yesterday and 16.2% reduce from final week
  • Short positions are 7.3% aloft than yesterday and 74.5% aloft from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-neutral offers small indication. Yet traders are reduction net-long than yesterday and compared with final week and therecent changes in perspective advise that a stream AUD/JPY cost trend might shortly retreat aloft notwithstanding a fact traders sojourn net-long.

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AUD/JPY Economic Calendar

AUD/JPY Economic Calendar

Economic Calendarlatest economic developments and upcoming event risk

Previous Weekly Technical Perspectives

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

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

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