AUD/JPY Appears Bearish after Japanese Retail Sales Increased

Japan – Retail Sales

Yesterday, at GMT 11:50 p.m., the Japanese Ministry of Economy, Trade and Industry (METI) released the year-over-year retail sales data, which measures the changes in the total value of sales made by the retailers in Japan over the past month. This data is published in an annualized format.

Since the retail sales data acts as the main gauge of consumer spending in Japan and consumer spending accounts for a large portion of overall economic activity in the country, binary options traders consider this to be one of the most important fundamental indicators of the Japanese economy.

In October, the Japanese retail sales figure decreased by 0.1% and the forecast for this month was set at an increase of 0.9%. However, the actual figure came out much better than expected, at 1.8%.

Australia – Building Approvals

Today, at GMT 7:30 p.m., the Australian Bureau of Statistics will release the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.

Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options investors consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure went up by 2.2% and the forecast for this month is currently set at a decrease of 2.4%.

Trade Recommendation for the AUD/JPY

AUDJPY-30nov15

 

Since the end of September 2015, the AUD/JPY has been trending upwards and formed a steady looking uptrend line in the process. However, over the last week or so, the uptrend halted around the major psychological resistance zone around the 88.50 level.

As the Japanese retail sales (y/y) figure came out much better than expected, today, the AUD/JPY price opened near the trend line. Regardless, the support around the trend line pushed the price further up during the Asian session today.

Currently, the AUD/JPY is trading above the important 88.50 level.

As the fundamental outlook for the AUD/JPY is bearish, we would recommend that binary options traders look for bearishness with this pair.

Under the circumstances, it is recommended that traders consider placing a PUT order for the AUD/JPY with their binary options brokers once the price penetrates and closes below the trend line and clears the support around the 87.90 level.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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