Talking Points
AUDJPY responds to long-term technical support
Long-scalp bias in play while above 91.20
Event Risk on Tap ThisWeek
AUDJPY Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
AUDJPY posts daily outside reversal candle off multi-year TL support- (near-term bullish)
Rally takes out initial weekly / monthly opening range at 91.60 (interim support)
Interim resistance 92.42 backed by key resistance at 92.95-93.00
Key support & bullish invalidation at 90.20/49
Daily RSI holds 40-support (constructive)
Pending momentum resistance trigger- breach would validate near-term reversal
Event Risk Ahead: Bank of Japan Monetary Policy Statement tonight, FOMC minutes tomorrow
AUDJPY 30min
Notes:The AUDJPY as responded to a multi-year TL support extending off the 2009 & 2012 lows with today’s RBA inspired outside reversal candle taking the pair through the initial weekly opening range at 91.19. Our focus remains weighted to the topside while above this region with near-term resistance eyed at the confluence of slope resistance & the 50% retracement of the decline at 92.43 heading into European trade.
Bottom line: looking to buy pullbacks while within this formation with a breach above 92.43 targeting more significant resistance at 92.95-93.00. Subsequent topside targets are eyed at 93.46, 93.80 & 94.50/73. A break of the weekly ORL shifts the short-side bias back into play targeting the 90-handle. A quarter of the daily ATR yields profit targets of 25-27pips per scalp. Caution is warranted heading into event risk tonight with the Bank of Japan interest rate likely to fuel added volatility in yen crosses.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
Scalp Webinar: USD at Risk Post Dismal NFPs- AUDUSD to Face RBA
USDCAD Reversal Scalps Pending Below 1.2700 Resistance
EURAUD Scalps Target Weekly Opening Range- Longs at Risk Sub-1.4175
Scalp Webinar: USD Defends Support Slope- Bulls at Risk Ahead of NFP
AUDUSD Reversal Scalp- Shorts Favored Sub 7850
—Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
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Source: Daily fx