ECB rate decision with no NEW news give a nice pull back on commodity currency Australian dollar, this is also give an opportunity to the bull to buy at cheaper price. Looking at currency strength comparison for the major pair as shown in the table below. In the last 24 hours the Yen become the strongest and Commodity currency ( AUD NZD CAD ) become the weakest.
Looking at the AUDJPY pair it reach 85 level which is roll reversal from last week high and Fibonacci 382 pullback of this week movement aiming at 1618 level around 88 level.
Go with the monthly Pivot of April from MS1 to MR1 which is about 88 level also. As summer month coming soon , Big fund could go on their holiday . For AUDJPY to go up Yen has to weaken as the money stop flowing back to Japan.
The daily show the pair has not break out the last month high of 86.5 level . But this is a nice 200 pips move if Bulls can get in around 84.5 level with nice 123 low risk high probability entry.
Happy Trading
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5 thoughts on “AUDJPY nice 100 pips pull back for bull ( 22 April ,2016)”
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Very good analysis.
Good Work Daniel
Thank you for the great analysis Daniel. How do you use the currency strength heatmap table in your thought process to assess the market and choose the pairs to trade?
I am also learning , what I am looking for is buy the strong and sell the weak assuming that the trend will not flip in 24 hours. from that heat map I will look for an opportunity to sell NZDJPY or AUDJPY , but this Friday exception BOJ flip Yen from strongest to weakest. Thanks for sharp question to keep me learning.
Thank you for the kind answer Daniel, we’ll see how the BOJ decision next week will shape JPYs pairs. Keep up the great work!