AUD/JPY Down 31 Pips; Eyes 20 Day Average

AUD/JPY Price Recap

A moment of silence, please, for the end of AUD/JPY’s 3 day up streak; price ended yesterday down 31 pips (-0.42%) to finish the day at a rate of rate of 73.458. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 81.05% from the day prior, but down 20.05% from the same day the week before. Relative to other instruments in the Forex asset class, AUD/JPY ranked 36th yesterday in terms of percentage price change. The price chart of AUD/JPY below illustrates.

AUD/JPY Technical Analysis

Coming into today the current price of AUD/JPY is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 30.6 pips away. Volatility for AUD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days AUD/JPY’s price has gone up 5 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDJPY, with 7 buy signals on our radar and 18 sell signals. This imputes a buy/sell ratio of 0.39, which is bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci and triangle technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Finally broke out of the pennant and naturally, we’d wait for a retest….But if the market has taught me anything it’s that retests don’t always happen so over time I’ve been able to easily enter the market in cases like this where the driving pair is pretty strong….And yes, I’m talking about the fib tool.