AUD/JPY Flirting with Pivotal Support
DailyFX.com -
Talking Points
AUDJPY weekly opening range set- Shorts favored sub 87
Updated targets & invalidation levels
AUDJPY Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
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
AUDJPY 30min
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:
---Written by Michael Boutros, Currency Strategist with DailyFX
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