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Australian Dollar Tries to Gain against the Yen

australian, yen

Looking at the AUD/JPY currency exchange rate and above four (4) hour MT 4 chart, the Australian dollar (AUD) is under pressure trading around 77 yen.

Yesterday, the European Central Bank (ECB) left their monetary policy and key interest rates unchanged for September. During their statement, the ECB showed no concern about the strength of the euro currency.

Looking at the economic calendar for Friday, there are no macroeconomic data releases out of Japan or Australia as we head into the weekend.

Today, the European Union is releasing inflation data. Germany, the Eurozone’s largest economy, will release their final monthly consumer price index (CPI). Italy will publish their quarterly unemployment rate. The United Kingdom will release their monthly gross domestic product (GDP) data as well as monthly industrial production and manufacturing data. They are also publishing their monthly goods trade balance.

The world’s largest economy, the United States will release their monthly core and headline consumer price index.

Daily Australian Dollar Technical Analysis (AUD/JPY)

Looking at the above price action chart, the first upside barrier to note is near the fifty (50) hour moving average (HMA) This has been a strong upside barrier since 3 September while the two hundred (200) hour moving average acts as a strong downside barrier.

With that said, the near term technical support for the Australian dollar lines up at 77.60 yen. A daily close below this layer of support will see the Australian dollar challenging the 200 HMA in play at 76.50 yen. The next downside barrier lines up at the monthly low price point at 76.10 yen and then the 20 August low price point at 75.60 yen then comes into focus.

On the upside, the first upside barrier is at 77.40 yen with the layer of technical resistance lining up at 78 yen then coming into play. After that the next layer of technical resistance lines up at 78.50 with 79 yen then coming into focus.   

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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