AUD/JPY Tests Major Resistance as Japanese Manufacturing Set to Slowdown

AUD / JPY – Technical Analysis for Australian Binary Options Brokers

Japan – Final Manufacturing PMI

At GMT 1:30 a.m., the Markit released Japan’s final manufacturing purchasing managers’ index (PMI) figure, which measures the level of a diffusion index by surveying around 400 purchasing managers in the country.

Since businesses are the first to react to changing economic climate and the PMI is calculated based on survey questions covering employment, production, price levels, new orders situation as well as inventory conditions; Australian binary options brokers consider this data to be a leading indicator of the overall economic health of the country.

Last month, the Japan’s final manufacturing PMI reading came out at 52.8 and the forecast for this month was set at a reading of 52.8 as well. However, the actual final PMI reading came out slightly lower compared to what the market was exacting, at 52.7.

Australia – Cash Rate

Tomorrow, at GMT 5:30 a.m., the Reserve Bank of Australia (RBA) released the official cash rate, which is the interest rate that major Australian banks and financial institutions pay to borrow funds held at the RBA.

Since short-term interest rates are the primary factor in the valuation of the Australian Dollar against other major currencies, binary  options investors pay close attention to any changes in the official cash rate.

The RBA left the cash rate at 1.5% in their last meeting and the forecast for this month is that the RBA will leave the cash rate unchanged at 1.5% for the time being.

AUD/JPY Forecast

AUDJPY analysis for Australian binary options brokers

After breaking below the uptrend line on April 4, 2017, the AUD/JPY mostly remained bearish over the last month. However, as soon as the price reached near the support around 81.5, it started a bullish retracement, which has so far pushed the AUD/JPY price towards the resistance near 83.75 level.

Earlier today, the AUD/JPY penetrated above the 83.75 level and currently, it is trading above the 84.00 level.

As the Japanese final manufacturing PMI figure is expected to come slightly below last month’s 52.8 reading, but the Australian cash rate is expected to remain unchanged at 1.5%, we believe it would likely set a bullish fundamental outlook for the AUD/JPY this week. Therefore, if the AUD/JPY closes above the resistance near 83.75, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 83.75.

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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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