AUD/JPY seems to be exhausted from its online currency trading rallies, as the pair is forming a potential reversal pattern on its 4-hour forex chart. Price is finding resistance at the 96.00 major psychological handle and could make a double top formation if it retests the support near 93.00 again.
Stochastic is pointing higher but could have a bit more space to go before reaching the oversold zone and indicating a return of buying pressure. This suggests that AUD/JPY could move until the online currency trading support at 93.00 in the near term.
If you’re bearish on this pair, you could short from the current levels with a tight stop and a target of 93.00. If you’re more cautious, you could wait for a test of the 93.00 neckline and an actual breakdown before sealing in a longer-term short bias for this pair. If you’re looking to go long though, you could wait for a bounce from 93.00 back to 96.00.
Online Currency Trading Forecast
Chinese data releases could be the major driver of price action for the Australian dollar this week, as GDP and industrial production figures are due. Take note that China is Australia’s main trade partner so any pickup in its economy could also be promising for the Australian economy and Australian dollar.
If actual figures miss expectations though, the Australian dollar could selloff to most of its online currency trading counterparts. Japanese data hasn’t been particularly strong but BOJ officials have repeatedly been saying that the economy is resilient and that extra stimulus isn’t necessary for now, even as signs of a slowdown were seen in the manufacturing and services industries.
The RBA has been cautious with its monetary policy statements, indicating that the Aussie is vulnerable to a sell off if risk aversion stays in the markets this week.
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