AUD/JPY : Daily Signal And Analysis from Instaforex

[InstaForexRebat]

AUD/JPY profit target reached for the 4th time, prepare to buy for a small correction

The price has dropped nicely and reached our profit target for the 4th time in a row yesterday. We prepare to buy for a small correction above support at 87.36 (Fibonacci extension, bullish price action) for a push up to at least 87.80 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (21,5,3) is seeing intermediate support above 10.14% where we expect a bounce from.

Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EUR/JPY, AUD/JPY and USD/JPY.

Buy above 87.36. Stop loss is at 87.12. Take profit is at 87.80.

 

[InstaForexRebat]

Australia Housing Boom Starts to Lose Steam

Property investors, who have helped fuel growing home prices in Australia, are in a tight spot as regulators impose restrictions to control lending.

Price growth in Sydney, the world's second-most expensive housing market, has slowed to 2.2 percent in the three months through July, lower from a high of five percent earlier this year, according to CoreLogic Inc.

Australia's largest banks have this year raised minimum deposits, tightened eligibility requirements and increased rates on interest-only mortgages. The nation's tax breaks for landlords, along with record-low borrowing costs, have made Australia home to over two million property investors.

Demand from such buyers has contributed to a bull run that has raised Sydney and Melbourne into the ranks of the world's priciest property markets. However, signs have started to emerge that the curbs are deterring speculators while home prices are beginning to cool.

Property auction clearance rates in Sydney are below 70 percent in seven of the past eight weeks, compared to as high as 81 percent in March prior to when the curbs were imposed. Investor loans accounted for 37 percent of new mortgages in May, down from 2017's high of 41 percent in January.

 

[InstaForexRebat]

AUD/JPY profit target reached for the 5th time, prepare to buy

The price has bounced perfectly and reached our profit target for the 5th time in a row. We remain bullish looking to buy on the break of our 87.80 resistance (Fibonacci retracement, horizontal overlap resistance). Once the price has broken this level with strength, we look to play the rise to 88.25 resistance (Fibonacci retracement, Fibonacci extension, horizontal swing high resistance).

RSI (34) has broken out of a descending resistance-turned-support line signaling that a change in momentum is fast approaching.

Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EUR/JPY, AUD/JPY, and USD/JPY.

Buy above 87.80. Stop loss is at 87.48. Take profit is at 88.25.

 

[InstaForexRebat]

AUD/JPY approaching strong support, prepare to buy for a corrective bounce

The price is approaching major support at 85.68 (Fibonacci retracement, horizontal swing low support, Fibonacci extension) and we expect to see a bounce above this level for a corrective move up to at least 86.33 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (34,5,3) is approaching major support at 1.2% where we expect a bounce from.

Correlation analysis: We're seeing bounces both on AUD/JPY and EUR/JPY.

Buy above 85.68. Stop loss is at 85.29. Take profit is at 86.33.

 

[Real]

TQ signal audjpy

 

[InstaForexRebat]

AUD/JPY reversing nicely below our selling area, remain bearish

The price dropped really nicely from our selling area yesterday. We remain bearish looking to sell below strong resistance at 86.57 (Fibonacci retracement, Fibonacci extension) for a corrective drop towards 85.42 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance at 91% and also intermediate resistance at 64%.

Correlation analysis: We're seeing JPY strength with drops on AUD/JPY, EUR/JPY, and USD/JPY.

Sell below 86.57. Stop loss is at 85.42. Take profit is at 87.17.

 

[InstaForexRebat]

RBA Renews Warning on Swelling Household Debt

Australia's central bank renewed its caution against increasing household debt, despite the prospect for the country's economy improving, the minutes of the latest policy decision showed.

During the monthly meeting where the Reserve Bank of Australia ruled to stand pat on rates, it noted the need to balance the risks that are linked to the elevated levels of household debt amid a low-inflation economy.

It added that better employment gains this year equates to a stronger labor market position. The bank restated its GDP growth expectations. It expects the economy to expand around 3 percent in 2018 and 2019, buttressed by low interest rates.

A faster rate of growth in non-mining business investment is also anticipated. The main shift is one of focus after the RBA omitted the labor market and inserted household balance sheets to its key points of concern, alongside the residential property market.

Currently, Australia's household debt stands at a record of 190 percent of the real income. Despite this concern, the minutes expressed increasing confidence that the country's economy will solidify and it is bound to gain the benefits of a much improved global economic backdrop.

 

[InstaForexRebat]

AUD/JPY testing major resistance, remain bearish

The price is back to testing our selling area. We remain bearish looking to sell below strong resistance at 86.57 (Fibonacci retracement, Fibonacci extension) for a corrective drop towards 85.42 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance at 91% and has reversed nicely from there.

Correlation analysis: We're seeing JPY strength with drops on AUD/JPY, EUR/JPY, and USD/JPY.

Sell below 86.57. Stop loss is at 85.42. Take profit is at 87.17.

 

[InstaForexRebat]

AUD/JPY testing major resistance, remain bearish

The price is testing major resistance at 87.39 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) and we expect to see a reaction from this level for a drop to at least 86.32 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 96% where we expect to see a corresponding reaction in price from.

Correlation analysis: We're seeing JPY strength with drops on AUD/JPY, EUR/JPY, and USD/JPY.

Sell below 87.39. Stop loss is at 88.08. Take profit is at 86.32.

 

[InstaForexRebat]

Japan Export Growth Increased in July

Japan's export growth rebounded in July, with imports increasing less than expected, keeping the country's trade surplus above the ¥400 billion level for a second month.

This also implies that the Japanese economy is carrying solid momentum through to the second half of 2017. The value of outbound shipments rose 13.4 percent in July, according to provisional figures from the Ministry of Finance, rebounding from a growth of 9.7 percent in June.

Year-on-year growth in exports to Asia were up 14.8 percent, higher by 1.2 percentage points. Growth in shipments to China slowed 1.9 percentage points from the previous month's level to 17.6 percent.

The value of shipments to North America accelerated by climbing 13 percent year on year after tumbling to a pace of 7.8 percent the month prior.

Imports increased less than anticipated, rising 0.8 percentage points from June's level for year-on-year growth of 16.3 percent. Such flows resulted in a trade surplus of ¥418.8 billion, down less than expected from a revised June surplus of ¥439.8 billion (initially ¥439.9 billion) and above expectations of ¥327.1 billion.