AUD/JPY testing major support, time to start buying
The price is now testing major support at 88.52 (Fibonacci retracement, Fibonacci extension, horizontal overlap support, bullish divergence) and we expect to see a bounce above this level to push price up to 89.66 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (34,3,1) is seeing support above 5% and also sees bullish divergence vs price signalling that a reversal is impending.
Buy above 88.52. Stop loss is at 87.89. Take profit is at 89.66.
The price has finally made a bullish exit of its triangle formation. We remain bullish looking to buy above support (Fibonacci retracement, Fibonacci extension, horizontal swing low support, bullish divergence) and play the breakout from the triangle towards 89.09 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (55,3,1) is seeing major support above 7% and also sees bullish divergence vs price signaling that a reversal is fast approaching.
Buy above 88.04. Stop loss is at 87.59. Take profit is at 89.09.
AUD/JPY broken out of triangle formation, remain bullish for a bounce
The price has finally made a bullish exit of its triangle formation and continues to hover nicely above our buying entry. We remain bullish looking to buy above support at 88.04 (Fibonacci retracement, Fibonacci extension, horizontal swing low support, bullish divergence) and play the breakout from the triangle towards 89.09 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (55,3,1) is seeing bullish confirmation with a recent bullish exit of our triangle formation signaling that a change in momentum is fast approaching.
Buy above 88.04. Stop loss is at 87.59. Take profit is at 89.09.
Fundamental Analysis of AUD/JPY for October 5, 2017
AUD/JPY has been impulsively bearish in nature today in a non-volatile trend structure. AUD and JPY have been quite competitive with recent gains. JPY has shown the impulsive nature today in light of recent downbeat economic reports. Today, Australia presented the Retail Sales report with a decline to -0.6% from the previous drop of -0.2% which was expected to be positive at 0.3%. On the plus side, Trade Balance report was published with a significant proficit of 0.99B from the previous figure of 0.81B which was expected to be at 0.88B.
On the other hand, today Japan does not have any economic reports or events to impact the market with. Tomorrow, Japan's Average Cash Earnings report is going to be published which is expected to show a positive result with an increase to 0.5% from the previous value of -0.6% and Leading Indicators is also expected to show an increase to 107.2% from the previous value of 105.2%. As for the current scenario, AUD fell immediately following the negative Retail Sales report from Australia that resulted in strong bearish pressure today. Despite lack of economic reports to drive JPY gains today, the Japanese currency has proved itself strong enough to advance further in the coming days against AUD.
Now let us look at the technical chart. The price has now been trading with an impulsive bearish momentum breaching below the dynamic level of 20 EMA. The daily candle has already engulfed the overall price action of the week which does signal that a daily close with the current structure today will lead to further bearish pressure towards 85.70 support area in the coming days. As the price remains below 89.10 resistance level, the bearish bias is expected to continue further.
AUD/JPY profit target reached perfectly, time to start buying
The price has dropped absolutely perfectly from our selling area and reached our profit target. We prepare to buy above major support at 87.81 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) for a push up to at least 88.75 resistance (Fibonacci retracement, horizontal swing high resistance).
Stochastic (31,3,1) is seeing strong support above 2.5% where we expect a bounce from.
Buy above 87.81. Stop loss is at 87.40. Take profit is at 88.75.
Fundamental Analysis of AUD/JPY for October 13, 2017
AUD/JPY has been quite corrective in nature showing some bullish gains recently towards the 88.00 resistance level. AUD has been quite positive with the economic reports recently which helped the currency to gain some momentum against JPY in last few days.
JPY has also been very positive with the economic reports making the gains of AUD quite competitive. Today, Australia's RBA Financial Stability Review was held where the financial stability and future monetary policies were discussed which expressed the hawkish stance and helped the currency to extend gains against JPY. On the other hand, JPY M2 Money Stock report was published today with an increase to 4.1% from the previous value of 4.0% which was expected to be unchanged.
To sum up, despite Japan's upbeat economic reports published recently it did not help the currency to gain good momentum against AUD today. This indicates that AUD is in a stronger position than JPY and further bullish pressure is expected in this pair in the future. Now let us look at the technical chart. The price is currently being held by the dynamic level of 20 EMA and 88.00 level as resistance.
If the price breaks above the dynamic level and 88.00 level with a daily close in the coming days, then we will consider buy positions in this pair with a target towards 89.10 resistance area. On the other hand, if the price rejects off the resistance area of 88.00 with a daily close, then we will plan sell positions with a target towards 85.50-70 support area.
AUD/JPY now on major resistance, time to turn bearish
We caught the rise on AUD/JPY quite nicely yesterday. Today we're starting to see it on major resistance (Fibonacci retracement, horizontal overlap resistance) and we expect to see a strong drop from this level to push the price down to at least 86.66 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,3,1) is seeing major resistance at 99% where we expect a corresponding reaction from.
Correlation analysis: We're seeing commodities weakness with drops expected on AUD/USD, AUD/JPY, and NZD/USD.
Sell below 87.93. Stop loss is at 88.43. Take profit is at 86.66.
Overview of AUD / JPY with the forecast for the current day
Since June last year, the main direction of the trend of the cross pair Australian dollar / Japanese yen is set by an upward wave. By now, it has reached the preliminary target zone. Started in July, the traffic segment may well be the first part of a larger counter wave. The final part of this design is counted from September 21.
In the last week, the pair's price is corrected, reaching the nearest level of support for large-scale. The preliminary calculation of the target zone allows you to wait for the pair to move down in the area of 3 price figures.
The next trading session is expected to float the mood of the movement, with a descending vector. The support zone is the lower boundary of daily volatility. In the second half of the day, the probability of a change in the exchange rate and the growth of quotations in the area of the resistance zone increases.
AUD/JPY strong resistance broken, time to start buying
The price has broken a strong resistance level which has led to a change in our momentum from bearish to bullish. We prepare to buy on dips above 87.93 support (Fibonacci retracement, horizontal overlap support) for a push up to at least 88.82 resistance (Fibonacci retracement, horizontal swing high resistance, Fibonacci extension).
RSI (34) sees an ascending support channel supporting our bullish momentum view.
Buy above 87.93. Stop loss is at 87.20. Take profit is at 88.82.
AUD/JPY profit target reached absolutely perfectly, prepare to sell
The price has shot up from our buying area and reached our profit target absolutely perfectly. We prepare to sell on major resistance at 88.76 (Multiple Fibonacci retracements, horizontal swing high resistance, Fibonacci extension) for a push down to at least 87.92 support (Fibonacci retracement, horizontal overlap support).
Stochastic (34,3,1) is seeing major resistance at 98% where we expect a corresponding drop from.
Sell below 88.76. Stop loss is at 89.38. Take profit is at 87.92.
