AUD/JPY Turns Lower At The Top Of Its Range
Matt Simpson April 8, 2019 2:37 AM
Interestingly, AUD/JPY has hit resistance at the top of its range just as the US10Y and US2Y have hit resistance levels. Given they both remain within a downtrend and, like AUD/JPY, are considered a barometer of risk, then we see potential for sentiment to turn lower. That said, if we see US yields break higher then it leaves the potential for AUD/JPY to also break higher in tandem and out of rage. Therefore, it could pay to watch yields in tandem with AUD/JPY at this potentially pivotal moment for risk.
AUD/JPY is currently trading lower for the session after printing a bearish pinbar on Friday. Furthermore, the stochastic oscillator is overbought territory and on the verge of providing a bearish sell-signal. With the market ranging, conditions are ideal for oscillators which tend to provide more false signals during a strong trend. If the range holds and sentiment turns lower, we could well see AUD/JPY head back towards the February lows. Bears could look to fade into any retracement below 79.26 (Friday’s low) for a more attractive entry level. However, given the range is around 240 pips, it could also serve well to trade from the daily chart.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.