The Bank of Japan has since decided on purchasing government securirties/bonds worth of 8- trillion Yen per month early this year. It is is country that at most depends on exports as they are one of of the largest manufacturers of goods in the world. Also by doing this, the Bank is trying to lower the bond yield down to 0%. So by virtue of that, they are trying to weaken the Yen so that trade between other countries in the world be easier and to their favor also.

AudJpy Daily Chart

Price opened at MM2 at the beginning of the month. It then went on to break what was then an immediate resistance level at the monthly pivot which was later retested. It has been ranging for the latter half of the month, between psych levels 85.5 and 87.00, with the 21 moving average holding strong as dynamic support.

AudJpy H4 Chart

Price has been trading through an upward channel. It recently came off the bottom of the channel. price opened between MM3 and and the weekly pivot, I am expecting price to continue trading in this manner through the channel. Should it break the bottom, a key level of support at WM1 is eyed.

AudJpy H1 Chart

Price is currently at a psych key level of resistance @ 86.00. I am expecting price to retrace all the way up to the previous lower low at DM3 before starting to look for buying opportunities by finding support.

One thought on “AudJpy Long Setup”

  1. H Skip Robinson says:

    I think that you are correct on the long term AUD/JPY from a technical standpoint. I’m actually long right now, but I have been thinking, and perhaps I’m wrong, that when a government buys their own paper, “Govies” I call them, that in essence their taking money out of circulation because they are often used as collateral for loans and other financing arrangements. That lowers the money supply “deflationary” because it diminishes any of the member bank’s ability to fractional lend with the govies as collateral. Fractional lending expands the money supply and is considered one of the major causes of inflation, along with of course government borrowing. Where I start to get confused is with all the carry trading and how that affects the lower interest rate countries. The more people borrow the more their is monetary expansion because of the fractional lending. I understand that Japan is at negative interest rates so if anyone has any Japanese yen I can borrow, give in a call. The idea of getting paid to borrow money is enticing. Lol.

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