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Talking Points

  • AUDJPY weekly opening range takes shape below key resistance
  • Updated targets & invalidation levels
  • Event Risk on Tap This Week

AUDJPY Daily

AUDJPY Approaching Monthly Open- Range Break to Determine Scalp Bias

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • AUDJPY testing key near-term confluence resistance at 86.12/28
  • Subsequent resistance & broader bearish invalidation at 87.31
  • Support 84.61/68 backed by the lower median-line parallel & 81.08
  • Momentum divergence into the lows warns of waning momentum
  • RSI resistance trigger pending- breach would be constructive
  • Key Event Risk Ahead: Japan Trade Balance tomorrow & FOMC Rate Decisionon Thursday

AUDJPY 30min

AUDJPY Approaching Monthly Open- Range Break to Determine Scalp Bias

Notes:AUDJPY has set a clean weekly opening range just below key confluence resistance around the monthly open at 86.13/28. The focus is on a break of this range with a general short-bias favored below the overnight highs with a break sub 84.61/68 (low-day close) targeting support objectives at 84.08 & 83.56.

A breach higher invalidates the immediate short-bias with such a scenario targeting 86.73 backed by key resistance up at 87.26/36. Note that this is a wider-range setup with a quarter of the daily average true range (ATR) yielding profit targets of 46-48pips per scalp. Caution is warranted heading into major event risk on Thursday with the FOMC policy decision and subsequent presser likely to fuel added volatility in risk sensitive pairs.

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Relevant Data Releases

AUDJPY Approaching Monthly Open- Range Break to Determine Scalp Bias

Other Setups in Play:

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  • Scalping GBPAUD Pullback- Targets in View Ahead of Aussie Data, BoE
  • USDCAD Levels to Know Ahead of BoC - 1.3335 Marks Critical Resistance
  • USDJPY Battle Lines Drawn Ahead of NFPs- Short Scalps Favored Sub 120.80

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex, contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

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