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Talking Points

  • AUDJPY weekly opening range set- Shorts favored sub 87
  • Updated targets & invalidation levels
  • Event Risk on Tap This Week

AUDJPY Daily

AUD/JPY Flirting with Pivotal Support

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

AUD/JPY Flirting with Pivotal Support

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.

For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk

Relevant Data Releases Next Week

AUD/JPY Flirting with Pivotal Support

Other Setups in Play:

  • Webinar: Post NFP Setups Play- Sterling Crosses at Risk
  • Key Reversal Day Sets Ominous Tone for GBP/JPY
  • GBP/USD Breakdown Potential on BoE, NFP- Levels to Know
  • NZD/USD Shorts at Risk Ahead of Jobs Data- 6640 Key Support
  • Webinar: Big Data Week to Threaten USD- RBA, BoE, NFP Setups in Focus

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

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere 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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