Never miss a story from Michael Boutros

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Michael Boutros

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points

  • AUDJPY at risk sub-86.82 - Key near-term support into 84.86
  • Updated targets & invalidation levels
  • Looking for more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)


AUD/JPY Daily Chart

Technical Outlook: AUDJPY turned last week from the December high-day close at 86.93 with the subsequent pullback now eyeing confluence support at the lower median-line parallel / 61.8% retracement at 85.02. The immediate downside bias is at risk heading into this region with a break below the monthly / yearly open at 84.25 needed to suggest a more significant turn is underway. Note that building bearish divergence on the weekly charts has me ultimately favoring a downside break. A breach through critical resistance at 87.55 would be needed to mark resumption of the broader uptrend.


AUD/JPY 120min Chart

Notes: A closer look at prices shows the pair trading within the confines of a near-term descending pitchfork formation extending off the monthly highs with the 50-line highlighting near-term resistance at 86.29/31 (note this is also the weekly open). Bearish invalidation is now lowered to the monthly high-day close at 86.82. Near-term support targets are eyed at 85.02 & 84.86 – both levels of interest for near-term recoveries.

Bottom line: from a trading standpoint, look to fade strength while within this formation towards the lower parallels with a break below 84.86 needed to keep the short-bias in play targeting 84.46 & the monthly open. A quarter of the daily average true range (ATR) yields profit targets of 20-23pips per scalp. Added caution is warranted heading into the Australia & Japanese CPI data later this week with the release likely to fuel volatility in the Aussie & Yen crosses.

Relevant Data Releases

AUD/JPY Reversal Targeting Initial Support Hurdle

Other Setups in Play:

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

Follow Michaelon Twitter @MBForex contact him at or Click Here to be added to his email distribution list.