AUDJPY Bull Flag
AUDJPY price action is looking interesting here. Following the latest peak in June, AUDJPY has been correcting lower within a bear channel, which can be viewed as a bull flag within the longer-term bull trend. With price well supported into the lows and now turning higher once again, the risks of an upside break are growing. Bulls can look for a break of the 95.67 internal highs targeting a move through YTD highs and up to 98.83 initially. More conservative bulls can wait for a break of YTD highs. Retail market is currently around 80% sort, reflecting plenty of scope for a fresh breakout here.
Keep an Eye On
The broader risk-on backdrop we’ve seen this week has helped lift AUD while weakening JPY through reduced safe-haven inflows. While this dynamic continues, we can expect the pair to continue higher near-term. With that in mind, today’s Jackson Hole event is the key. If traders sense any dovishness whatsoever from Powell, most likely with regard to next year’s outlook, then USD is likely to come off and risk markets will move higher, supporting AUDJPY.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.