AUD/JPY recently made a strong break below a online currency trading support level and may be ready for a quick retracement before resuming its drop. The pair previously found support at the 94.50 minor psychological level and the break took it down to the 93.00 level.
A pullback to the 50% Fibonacci level, which is in line with the former support at 94.50, could put the pair back in selloff mode. Take note though that a spike higher earlier this online currency trading week lasted past the 61.8% Fib, which might be a good area to set a stop loss.
Shorting at 94.50 with a stop at 95.50 and a target of 93.00 could yield a 1.5-to-1 return on risk. Stochastic is already in the overbought zone, indicating that an online currency trading selloff might take place sooner or later.
Online Currency Trading Signal
Buying for the Australian dollar could resume if risk appetite picks up in this online currency trading week. The parliamentary elections in the EU went by without much conflict, although the victory of protest parties raises the odds of political instability in the region.
As for the Australian economy itself, data remains relatively strong compared to Japan, which is set to release its first batch of reports with the sales tax hike effect in April. Declines in industrial production and household spending are expected and weaker than expected figures could revive talks of further easing from the BOJ in the coming months. Signs of resilience, on the other hand, could mean renewed selling pressure for AUD/JPY.
Gains for AUD/JPY could push the pair back to its previous highs near 96.50 or higher while a selloff could last until the 93.00 level or lower.
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