Both FA and TA point to a BIG multi-week down trend
The down trend in AUDJPY from 89.00 level saw a technical rebound to 82.30 last week.
It has met with a down trend channel resistance line as shown.
There are other technical patterns, indicators, wave counts which I see as bearish. But I am just presenting a very simplified chart here.
In view of deepening US-China trade war, which is also spreading to involve diplomatic issues, there is potential for a major RISK OFF situation in global markets, centred around China/HK. Watch out for USD/CNH at 7.0000 and USD/HKD movements. They look vulnerable for a financial attack by hedge funds to break the band.
Meanwhile, RBA looks like a long way more before it will hike rates, whereas Fed is expected to hike another 0.25% this week.
As such, both Fundamental and Technical Analysis point to a potentially BIG, multi-week down trend in AUDJPY.
It has met with a down trend channel resistance line as shown.
There are other technical patterns, indicators, wave counts which I see as bearish. But I am just presenting a very simplified chart here.
In view of deepening US-China trade war, which is also spreading to involve diplomatic issues, there is potential for a major RISK OFF situation in global markets, centred around China/HK. Watch out for USD/CNH at 7.0000 and USD/HKD movements. They look vulnerable for a financial attack by hedge funds to break the band.
Meanwhile, RBA looks like a long way more before it will hike rates, whereas Fed is expected to hike another 0.25% this week.
As such, both Fundamental and Technical Analysis point to a potentially BIG, multi-week down trend in AUDJPY.
Trade active:
Current level is 81.83.
Short at 81.83, STOP at 82.50.
Leave the take profit open. Add/ride if possible.
Short at 81.83, STOP at 82.50.
Leave the take profit open. Add/ride if possible.