AUDJPY Rebound Off Slope Support Eyes 86.00 Resistance Ahead of NFP

Talking Points

• AUDJPY near-term rebound in focus ahead of key event risk
• Updated targets & invalidation levels
• Event Risk on Tap This Week

AUDNZD Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• AUDJPY rebounding off multi-year slope line- Consolidating below slope resistance
• Near-term risk is higher while above 83.00- broader bullish invalidation
• Topside objectives 84.72 & 86.12/28 (key near-term resistance)
• Break below TL support puts larger downtrend back in focus targeting 81.75 & 80.17
• Daily RSI support/resistance RSI triggers pending- break to offer guidance
• Key Event Risk Ahead: Japanese Jobless rate tonight and U.S. NFP tomorrow

AUDNZD 30min

Notes: AUDJPY is trading within the confines of an ascending median-line formation off last week & this week’s lows with the pair coming into confluence support today at the 84-handle. A break below this mark invalidates the immediate topside bias with such a scenario targeting 83.42 & key support into the 83.05. Note that the 2011 long-term slope line converges with basic TL support off the September lows at this level (check daily chart).

Bottom line: looking higher while within this formation but ultimately we’d be looking to sell a rally up towards the upper median-line parallel. Interim resistance is eyed at the 2015 low-day close at 84.72 with a breach above targeting subsequent objectives at 85.15, 85.70 & key resistance at 86.04/13. A quarter of the daily average true range (ATR) yields profit targets of 33-35 pips per scalp. Caution is warranted heading into tomorrow’s U.S. employment report with the release likely to fuel added volatility in risk sensitive pairs.

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Relevant Data Releases

Other Setups in Play:

• AUDNZD at Critical Inflection Point- Scalps Target Weekly Opening Range
• Scalping EURUSD Ahead of NFP- Long Bias Favored Above 1.12
• Webinar: USD Fails at Resistance- Scalping Sept. Range Ahead of NFP
• Gold at Critical Resistance- Long Scalps Vulnerable Sub 1155
• GBPJPY Reversal Setup- Short Scalps Eye 182

---Written by Michael Boutros, Currency Strategist with DailyFX

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