Talking Points
- AUDJPY approaches resistance confluence at 90.02/19
- Updated targets & invalidation levels
- Event Risk on Tap This Week
AUDJPY Daily
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
AUDJPY has been trading within the confines of a well-defined ascending channel formation off the late-October low with the rally now approaching its first major resistance hurdle at 90.03/19. This key region is defined by the 38.2% retracement of the decline off the 2014 high & the 76.4% retracement of the August decline and converges on both near-term & medium-term channel resistance. The pair is at risk for a pullback off these levels but the trade remains constructive above 88.64 / channel support.
Note that the momentum profile remains promising with a multi-month support trigger continuing to guide the oscillator. A breach higher targets resistance objectives at 90.71 (200DMA) and the upper median-line parallel / 91.53.
AUDJPY30min
Notes:Intraday RSI is coiling up as we head into highlighted resistance with the immediate long-bias at risk below this threshold. Note we are at resistance within an uptrend and we’ll be looking for a pullback to offer favorable long entries. Soft support rests at 89.33 & 89 backed by our near-term bullish invalidation level at 88.60 / channel support.
A quarter of the daily average true range yields profit targets of 18-20pips per scalp. Added caution is warranted heading into Australian GDP data tonight as well as Trade Balance & Retail Sales later in the week with the releases likely to fuel volatility in the Aussie crosses.
For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk
Relevant Data Releases Next Week
Other Setups in Play:
- AUD/NZD Pullback Testing Pivotal Support
- GBP/JPY Plummets Into Support- Sell Rips Sub 186
- Webinar: Dollar Crosses at Key Juncture Ahead of US Holiday
- EUR/CAD Rebound Eyes 1.4340 Hurdle
- NZD/USD Drops Into September High- Bearish Sub 6588
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)
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