The latest volatility and momentum might proceed in AUD/JPY with the most recent Financial institution of Japan assertion on the way in which.
Earlier than shifting on, ICYMI, at this time’s Day by day U.S. Session Watchlist seemed on the downtrend in AUD/USD as risk sentiment sours, so you’ll want to examine that out to see if there may be nonetheless a possible play!
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Upcoming Potential Catalysts on the Economic Calendar
API Crude Oil Inventory Change at 8:30 pm GMT
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Financial institution of Japan Curiosity Price Resolution at 3:00 am GMT (Sept. 22)
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What to Watch: AUD/JPY
On the one hour downtrend of AUD/JPY above, we are able to see a really clear down trending market within the works. The latest shift in threat sentiment in the direction of aversion has tremendously supported the Japanese yen, the same old benefactor when merchants need to loosen up on threat.
Coming quickly, we’ve obtained potential catalysts from each Australia and Japan, most notably the most recent financial coverage assertion from the Financial institution of Japan. Expectations for that event are that the BOJ is likely to hold off on any moves, particularly with a ruling get together vote subsequent week to find out the subsequent Prime Minister of Japan.
And it’s seemingly that with the pandemic persevering with sturdy sufficient to maintain many elements of Japan in a state of emergency, in addition to a hinderance to provide chains and commerce, the rhetoric on future development will stay dovish.
Oddly sufficient, bearish sentiment might proceed to help the “protected haven” yen, and if it certainly does push AUD/JPY decrease, we’ll be on the look ahead to a sustained break of the earlier swing lows / 79.00 main psychological deal with to doubtlessly take a short-term place.
Additionally, if the market does rebound to the a falling trendline space / earlier swing excessive round 79.75, we’ll be looking out for bearish reversal patterns to play a possible setup with the next chance of success as technical merchants might hop again briefly, and if general threat sentiment stays destructive.