News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • China's President Xi Jinping: Must uphold multilateral trading system with #WTO at core, pandemic makes clear must reject Cold War zero sum thinking -BBG
  • RBA Minutes: Monitoring housing borrowing, lending standards carefully. Data, CPI outlook will decide shift of YCC target to November-24 -BBG
  • Please join us at 11:00 PM EST/3:00 GMT for a webinar where you can prepare to trade AUD/USD in the week ahead. Register here:
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX:
  • RT @KyleR_IG: $AUD/USD up a fraction after the release.
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
  • The S&P 500 paused a record rally amid weakness in the technology sector. Profit-taking activities appeared to be gathering pace as traders awaited corporate earnings. The US Dollar fell to a six-week low.
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min)
  • Update on #Cryptocurrencies #BITCOIN -3.34% #BITCOINCASH -13.38% #ETHEREUM -7.21% #RIPPLE -16.38% #LITECOIN -11.05% #DOGECOIN +9.09%
  • What is your forex trading style? Take the quiz and find out:
FX Trading Setups in AUD/JPY On US-China Trade Talk Outcomes

FX Trading Setups in AUD/JPY On US-China Trade Talk Outcomes

Daniel Dubrovsky, Strategist

Australian Dollar, Japanese Yen, AUD/JPY - Talking Points

  • AUD/JPY soared along with S&P 500 on US-China trade deal hopes
  • A sudden collapse in negotiations risks quickly overturning progress
  • I cover bearish and bullish AUD/JPY technical setups down the road

Build confidence in your own AUD/JPY strategy with the help of our free guide!

Australian Dollar, Japanese Yen Fundamental Outlook

A currency pair like AUD/JPY often has a close relationship to major global stock indexes, such as the S&P 500. The Australian Dollar typically has a sentiment-linked status while the Japanese Yen an anti-risk one. The former is a currency closely tied to the global business cycle, while the latter a go-to for funding carry trades. Developments in US-China trade talks have thus been a key fundamental driver for AUD/JPY.

Lately, the currency pair has been on the rise alongside a pickup in US-China trade deal bets. As the S&P 500 hit record highs, AUD/JPY has climbed about 7.75 percent since its bottom in August. Now over the past 24 hours, reports crossed the wires that given an interim agreement signing, tariffs against China could begin to be reduced in phases.

2020 Fed rate cut bets have been on the decline and the central bank has made its message clear about hiking. Chair Jerome Powell wants to see a “really significant” rise in inflation before raising rates. With tightening credit conditions appearing to be off the table, that is another fundamental force to support the pickup in market mood and continue the rise in AUD/JPY.

However, given past discrepancies, a guaranteed trade-deal signing between the US and China is anything but certain. This was underpinned when reports soon crossed the wires that a rollback in Chinese tariffs faces fierce internal opposition. With that in mind, there could still be potential for further gains in AUD/JPY. But, the risk remains that gains could be quickly erased should talks collapse.

Follow me on twitter @ddubrovskyFX for updates on AUD/JPY’s performance

AUD/JPY - Technical Setups


From a technical standpoint, there are both bearish and bullish formations brewing in AUD/JPY. Starting with the former, a Rising Wedge has been taking shape since the end of August. This is typically a bearish reversal pattern that comes into play after a daily close under the floor of the pattern. That could pave the way for a medium-term decline towards 69.97.

AUD/JPY– Rising Wedge

FX Trading Setups in AUD/JPY On US-China Trade Talk Outcomes


On the flip side, there may be an Ascending Triangle forming from a more long-term perspective. Typically, these act as a continuation of the trend that has taken shape prior to the formation. But, it can at times mark a turning point. In this case, a potential bottom for AUD/JPY should prices manage to close above the highs achieved in June and July.

AUD/JPY– Ascending Triangle

FX Trading Setups in AUD/JPY On US-China Trade Talk Outcomes

AUD/JPY – Bottom Line

Looking at RSI we do have the presence of negative divergence. This shows that upside momentum is fading and this can precede a turn lower. That may push prices down to the psychological barrier between 74.47 – 73.93. A daily close under this point would pave the way for a test of the floor of the Rising Wedge. At that point, it may become more clear which of the candlestick formations could prevail.

FX Trading Setups in AUD/JPY On US-China Trade Talk Outcomes

Charts Created Using TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.