Weekly Technical Perspective on Aussie vs Japanese Yen (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. AUD/JPY has been trade within a proportions of a extended concentration settlement given a Mar lows with cost now trade only above a vicious weekly support confluence. Here are a pivotal targets cancellation levels that matter on the AUD/JPY weekly chart.

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AUD/JPY Weekly Price Chart

AUD/JPY Weekly Price Chart

Notes: AUD/JPY opens Aug trade only above a connection support concentration we’ve been tracking for months now during 81.58/97 – cost has been incompetent to tighten next this separator given March. Basic trendline support fluctuating off a 2016 late-June low converges on this section into a start of a month and serve highlights a technical stress (make-or-break level).

A mangle next this pivotal support connection targets a yearly lows during 80.50 corroborated by a 161.8% prolongation off a 2017 decrease during 79.45. Key weekly insurgency bearish cancellation stays solid during 84.25/66 – a tighten above this turn would be indispensable to advise a some-more poignant low is in place with such a unfolding targeting a 86-handle.

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Bottom line: AUD/JPY is trade within a contractionary operation with a reduce end now concentration on up-slope support. The broader concentration streamer into a start of a month will be on a mangle of a 81.58-84.66 range. From a trade standpoint, I’ve adored near-term trades (longs) opposite a 82-handle – though with a monthly opening range holding figure only above this pivotal support zone, it’s value watchful for serve guidance- watch a weekly close. I’ll tell an updated AUD/JPY scalp report once we get some some-more clarity on near-term cost action.

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AUD/JPY Trader Sentiment

AUD/JPY Trader Sentiment

  • A outline of IG Client Sentiment shows traders are net-long AUD/JPY- a ratio stands during +2.03 (67% of traders are long) – bearishreading
  • Traders have remained net-long given July 23rd; cost has remained unvaried given then
  • The commission of traders net-long is now a top given July 12th
  • Long positions are6.8% aloft than yesterday and 6.7% reduce from final week
  • Short positions are 28.4% reduce than yesterday and 40.2% reduce from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests AUD/JPY 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 AUD/JPY-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 AUD/JPY Data Releases

AUD/JPY Economic Calendar

Economic Calendar– for a latest 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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