AUD/JPY Heads Down For the 2nd Day In A Row; in a Downtrend Over Past 90 Days

AUD/JPY Price Recap

AUD/JPY is down 252 pips (3.71%) since yesterday (with its current price near 65.243), marking the 2nd day in a row it has gone down. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 54.11% from the day prior, and up 148.18% from the same day the week before. Out of the 40 instruments in the Forex asset class, AUD/JPY ended up ranking 39th for the day in terms of day-over-day price change. Here is a price chart of AUD/JPY.

AUD/JPY Technical Analysis

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 603.8 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days AUD/JPY’s price has gone down 11 them.

A final note on correlations: over the past week, the currency pair bearing the strongest correlation to AUD/JPY has been AUD/CHF — not terribly surprising, given that AUD is in both currency pairs. As for pairs with the least correlation, EUR/USD is the pair that holds that distinction for the past week, while USD/CNH does on a two week basis.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDJPY, with 3 buy signals on our radar and 7 sell signals. This imputes a buy/sell ratio of 0.43, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Point B retracement of the primary XA leg lies at an approximate of 0.618….The content of this speculation (including all data) is organized and published by Nirvana Trades & Investments for the sole purpose of education and assistance in making independent investment decisions….NFT&I does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.