AUD/JPY Likely to Move Up as the Price Penetrated Above Downtrend Line

Australia – New Motor Vehicle Sales

Today, at GMT 12:30 a.m., the Australian Bureau of Statistics released the new motor vehicle sales figure, which measures the changes in the number of cars that are sold in the local market over the past month.

Since people tend to make car purchases when they feel confident about their financial conditions, binary options traders consider the new motor vehicle sales figure to be a leading indicator of the consumer confidence in Australia.

Last month, the new motor vehicle sales (m/m) figure increased by1.3% and this month it declined by 0.5%.

Japan – Tertiary Industry Activity

Later, at GMT 4:30 a.m., the Japanese Ministry of Economy, Trade and Industry will release the month over month tertiary industry activity figure, which measures the changes in the total value of services bought by tertiary businesses in Japan.

Since Japanese businesses increase their purchases of various services in order to expand their business when they feel optimistic, the tertiary industry activity figure is considered by binary options investors as a leading indicator of the overall Japanese economy.

Last month, the Japanese tertiary industry activity went up by 0.0%, and the forecast for this month was set at a decrease of 0.6%. However, the actual figure came out slightly worse than expected, at -0.8%.

Trade Recommendation for the AUD/JPY

AUDJPYDaily

Since the AUD/JPY broke below the uptrend line on January 4, the price has fallen sharply over the last two weeks. After falling around 675 pips, the AUD/JPY found strong support around the 79.50 level and the price started to retrace.

Today, the AUD/JPY has penetrated above the sharp looking downtrend line and if the daily bar closes above the downtrend line, it would signal a retracement move, probably back to the 38.2% Fibonacci retracement level of the last downturn.

Furthermore, as the Japanese tertiary industry activity declined by 0.8%, slightly worse than the what the market was expecting, it would also likely create some bullish momentum in the market.

Under the circumstances, it would be recommended that traders consider placing a CALL order for the AUD/JPY with their binary options brokers once the price closes above the 82.75 level.

Recommended Broker: HighLow.net

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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