AUDJPY Continues Lower
The recent AUDJPY short-trade has seen the market rolling over with price breaking down below 80.69, hitting the initial target at 79.57 and continuing lower thereafter. Fresh lock-downs, as well as social unrest in Australia, have turned near term sentiment bleaker for the Aussie. On the other hand, with JPY continuing to strengthen amidst safe-haven flows, there is room for the bear trend to continue towards 76.80, in line with bearish RSI and MACD readings. This view is further supported by the retail community holding an almost 90% short position at current levels.
Key Data to Watch
Weaker Aussie manufacturing and services PMI overnight have set the tone for now. Little on the slate for either currency this week, besides Aussie cap-ex later in the week. Key focus will be on risk flows and COVID news which again favour JPY in the near term. Aussie retail sales will also be on watch and are forecast negative in light of the fresh lockdowns over the last month.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.