AUD/JPY May Turn Bullish Amid Forecast of Declining Japanese Tertiary Industry Activity

Japan – Tertiary Industry Activity

Tomorrow, at GMT 5:30 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 traders as a leading indicator of the overall Japanese economy.

Last month, the Japanese tertiary industry activity went up by 1.4%, and the forecast for this month is currently set at a decline of -0.7%.

Australia – Unemployment Rate

On Thursday, at GMT 2:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate, which measures the percentage of total work force which remained unemployed over the past month.

Australian Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.7% and the forecast for this month is set at a slightly higher figure, at 5.8%.

Trade Recommendation for the AUD/JPY

AUDJPYDaily

Since forming a double top on April 27, the AUD/JPY has remained in a strong downtrend and the price has fallen by around 1,380 pips. But, since forming a large bearish bar on June 24, the AUD/JPY appears to have lost the bearish momentum as the price remained a close range since then.

In fact, the AUD/JPY is appearing to form an upward sloping trend line, which indicates a bullish momentum in the market.

Furthermore, as the Japanese tertiary industry activity is expected to decline, it would likely set a bullish the fundamental outlook for the AUD/JPY.

Earlier today, the AUD/JPY price penetrated above last week’s high, at 77.40 and if the price closes above this important resistance level, it may attract additional bullish momentum in the market.

Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/JPY with their binary options brokers as soon as the price and closes above the 77.40 level on the daily chart.

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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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