AUD/JPY Price Aims at Key Support Despite Increasing Australian Vehicle Sales

Australia – New Motor Vehicle Sales

Today, at GMT 1:30 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 by 0.0% and this month it has increased by 2.2%.

Japan – Tertiary Industry Activity

On Friday, 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 1.5%, and the forecast for this month is currently set at a decline of -0.4%.

Trade Recommendation for the AUD/JPY

AUDJPYDaily

Since reaching 77.58 on February 11, the AUD/JPY remained mostly range bound for the last two months. In the last week of March, the AUD/JPY tested the resistance around the 86.15 level, and failed to close above it. As a result, the pair resumed the sideways price action and the price fell towards the support around 81.15 level last week.

Although the retracement pullback since then has been sharp, the AUD/JPY this week opened with a large gap.

Since the Australian new motor vehicle sales figure is expected to go up by 2.2% this month, the fundamental outlook for the AUD/JPY would likely remain bullish. However, if the price closes below the immediate support around the 82.50 level, there is a good chance the AUD/JPY price will fall towards the 81.15 level once again.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the AUD/JPY with their binary options brokers once the price closes below the 82.50 level.

Recommended Broker: BinaryTilt

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

LinkedIn Google+ 

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

Leave a Reply