On its daily forex chart, AUD/JPY is giving forex trade signals by testing the top of the rising channel with stochastic reflecting overbought conditions. Price might pull up for a test of the actual resistance around the 96.00 major psychological level before heading south.
If resistance holds, forex trade signals suggest that a selloff might last until the near term lows at the 93.00 major psychological level around the middle of the channel. A move lower could last until the bottom of the channel near the 90.00 mark. This could depend on the top-tier events from both Australia and Japan, with both the RBA and BOJ set to print their monetary policy meeting minutes.
Shorting at the 96.00 resistance with a 100-pip stop and a 300-pip target could yield a 3:1 trade and aiming for the 90.00 mark with a 600-pip target would improve the return-on-risk. Moving the stop to entry once price tests the middle of the channel can be a strategy to protect profits.
Forex Trade Signals and Forecast
Minutes of the latest policy meeting from the RBA aren’t likely to contain any monetary policy surprises, as the central bank simply highlighted the improvements in the Australian economy during their latest rate decision. As for Japan, the BOJ minutes could be bullish for the yen since BOJ policymakers keep emphasizing the resilience of the economy despite the sales tax hike.
Forex trade signals and data from Australia has disappointed lately, particularly in the jobs sector. Their economy actually lost jobs in May instead of adding the estimated 10,300 workers. Japan, on the other hand, has seen a decline in consumer spending and industrial production right after the tax hike but it is likely to see a pickup sooner or later.
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