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. See our updated Privacy Policy here.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Key levels worth watching for gold price action $XAUUSD $GLD $GC_F https://t.co/J3jKDK23PW
  • Uninspiring close for the major US stock indices https://t.co/xF0x9v2AyH
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: 0.00% Wall Street: -0.00% Germany 30: -0.09% France 40: -0.09% FTSE 100: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/07Dfr57x2u
  • A rebound off confluence support has USD/CAD eyeing near-term downtrend resistance just higher. Get your $USDCAD market update from @MBForex here:https://t.co/fPTwHd65rl https://t.co/jUzX00FnKe
  • US Dollar Price Action Setups: EUR/USD, GBP/USD, USD/CAD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/08/04/US-Dollar-Price-Action-Setups-EUR-USD-EURUSD-GBP-USD-GBPUSD-USD-CAD-USDCAD.html https://t.co/vRuwBes7bH
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.10% Gold: 0.03% Silver: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UeR1femBvZ
  • US Treasury Secretary Yellen: - We have seen significant price increases in recent months - Expects to see elevated inflation rates for some time - Inflation will recede in not too distant future and fall to levels in line with price stability by the end of the year $USD #Gold
  • @RichDvorakFX inverse H&S pattern in the context of the bull flag puts emphasis on bullish breakout potential...need >4430 for bullish confirmation imo
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.38%, while traders in France 40 are at opposite extremes with 78.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/x6BPnBF4lP
  • S&P 500 on the verge of breaking small consolidation pattern. Dow Jones looking for a new record high. Get your market update from @PaulRobinsonFX here:https://t.co/cbYD5oFkpb https://t.co/jjRuAK1fdb
AUD/JPY: Sell-off Approaches Initial Support Hurdles

AUD/JPY: Sell-off Approaches Initial Support Hurdles

Michael Boutros, Strategist

Talking Points

  • AUD/JPY testing key support confluence- Shorts at risk near-term above 83
  • 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)

AUDJPY Daily

AUD/JPY Daily Chart

Technical Outlook:AUDJPY trading just above a near-term support confluence at 82.97-83 where he 38.2% retracement of the advance off the July advance converges on the lower median-line parallel. Today’s low registered at 83.22 and while we could still see a drop into this key support zone, the short-bias is at risk while above the figure. Interim resistance stands with the median-line (currently ~84.40s).

Keep in mind a weekly close below 83.76 would constitute a break of the early opening range & would keep the medium-term outlook weighted to the downside in AUDJPY. As noted in this year’s Top 2017 Trading Opportunities, we were looking for a pullback early in the year but ultimately I’d be interested in long-entries into structural support. We’re now at the first hurdle- 81.36 is would be considered critical support.

AUDJPY 240min

AUD/JPY 240min Chart

Notes:A closer look at price action highlights a perfect tag of support at the lower parallel today with immediate resistance seen at 83.76 backed by 84.42 & 85.03/19 – both areas of interest for exhaustion / short-entries. A break below 82.98 targets subsequent support objectives at the September 2015 low at 82.12 & the 50% retracement at 81.36. From a trading standpoint, I’d be willing to take a few stabs on the long-side for a rebound if we go for another test of the figure with a breach above the upper parallel / 85.84 (bearish invalidation) needed to shift the broader focus back to the topside.

A quarter of the daily average true range (ATR) yields profit targets of 20-25pips per scalp. Other than Japan PMI numbers tonight, the docket is rather light for this pair and we’ll keep an eye on broader market sentiment for further guidance.

---

Relevant Data Releases

AUD/JPY: Sell-off Approaches Initial Support Hurdles

Other Setups in Play:

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list.

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

DISCLOSURES