AUD/JPY Forecast Fundamental Analysis | Australian Dollar / Japanese Yen

Japanese Retail Sales for July increased 2.4% annualized. Economists predicted an increase of 2.1. Forex traders can compare this to Japanese Retail Trade for June, which increased by 0.1% annualized.


The forecast for the AUD/JPY remains bearish as price action nears the completion of its reversal after reaching support. The minor rally allowed the Tenkan-sen to stabilize and turn sideways, but the Kijun-sen extends its slide. Adding to the bearish outlook for this currency pair is the descending Ichimoku Kinko Hyo Cloud, together with persistent inflationary pressures. The CCI moved out of extreme oversold territory but is losing momentum with plenty of downside potential.


AUD/JPY Forecast Fundamental Analysis | Australian Dollar / Japanese Yen


Should price action for the AUD/JPY remain inside the or breakdown below the 79.750 to 80.350 zone, recommend the following trade set-up:

  • Timeframe: D1       
  • Recommendation: Short Position
  • Entry Level: Short Position @ 80.150
  • Take Profit Zone: 77.450 – 78.100
  • Stop Loss Level: 80.850


Should price action for the AUD/JPY breakout above 80.350, recommend the following trade set-up:

  • Timeframe: D1       
  • Recommendation: Long Position
  • Entry Level: Long Position @ 80.700
  • Take Profit Zone: 81.550 – 82.000
  • Stop Loss Level: 80.350
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