Talking Points
- AUD/JPY holding within bearish formation ahead of Aussie Employment
- Updated targets & invalidation levels
AUDJPY 120min
Chart Created Using TradingView
Technical Outlook: AUDJPY is trading within the confines of a well-defined descending median-line formation extending off the July highs, keeping the focus lower in the pair heading into tonight’s Australian Employment report. Interim resistance now stands at 76.98 backed by the weekly open 77.41. Bearish invalidation stands at the monthly open / weekly opening-range high at 77.71/80.
The pair is now testing the August lows and a break targets support objectives at 75.90 & 75.58. Subsequent downside targets at 75.05 & 74.58.From a trading standpoint, I would be looking to fade strength while below 77.80 - Ultimately, I’d be looking for long-entries lower down into structural support. For the complete setup and to continue tracking this trade& more throughout the week- Subscribe to SB Trade Deskand take advantage of the DailyFX New Subscriber Discount.
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- A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net long AUDJPY- the ratio stands at +2.13 (68% of traders are long)- bearish reading
- Yesterday the ratio was 1.79. Short positions are 15.1% lower than yesterday and 18.8% above levels seen last week.
- Open interest is 4.8% lower than yesterday and 4.6% above its monthly average.
- Current retail positioning keeps the focus lower for now and we’ll be looking for a build in bullish sentiment heading into fresh monthly lows for signs that the short-side bias may be waning.
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Relevant Data Releases This Week
Other Setups in Play:
- NZD/USD Advance Eyes Key Hurdle at 7300 Ahead of Labor Report
- EUR/USD: Respect this Slope Ahead of Upcoming Data- SSI Points Higher
- Webinar: USD Crosses in Focus- Levels to Know Ahead of CPI
- USD/JPY Range at Risk as Retail FX Sentiment Comes Off Extremes
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---Written by Michael Boutros, Currency Strategist with DailyFX
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