AUD/JPY Flirting with Pivotal Support
- AUDJPY weekly opening range set- Shorts favored sub 87
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- AUDJPY holding below channel resistance off the October high
- Interim support 86.13/28- Break lower targets 85.46 & 84.58/72
- Resistance at 87 backed by near-term bearish invalidation 87.43/50
- Daily RSI support-trigger pending- break would be bearish
- Key Event Risk Ahead: Aussie Unemployment tomorrow and Japan Industrial Production & GDP later this week
Notes: AUDJPY is trading within the confines of these well-defined parallels off the monthly highs with the weekly opening range now set just above key near-term support at 86.47/53. A break below this level keeps the short-bias in focus targeting 086.26/29 backed by the parallel extending off last week’s low & 85.93.
Keep in mind that seasonal are bearish yen (bullish yen crosses) into the year-end so we’ll want to be nimble until we clear the monthly opening range. Interim resistance stands at 86.80 backed by our near-term bearish invalidation level at 87.07. A breach above 87.43/50 is needed to shift the focus back to the long side targeting the October high-day close at 88.35.
A quarter of the daily average true range (ATR) yields profit targets of 22-24 pips per scalp. Added caution is warranted heading into key data out of Australia & Japan this week with the release likely to fuel added volatility in Aussie & Yen crosses.
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Relevant Data Releases Next Week
Other Setups in Play:
- Webinar: Post NFP Setups Play- Sterling Crosses at Risk
- Key Reversal Day Sets Ominous Tone for GBP/JPY
- GBP/USD Breakdown Potential on BoE, NFP- Levels to Know
- NZD/USD Shorts at Risk Ahead of Jobs Data- 6640 Key Support
- Webinar: Big Data Week to Threaten USD- RBA, BoE, NFP Setups in Focus
---Written by Michael Boutros, Currency Strategist with DailyFX
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