AUD/JPY Bearish Momentum to Continue Amid Increasing Japanese Flash Manufacturing PMI

AUDJPY – Technical Analysis for HighLow

Australia – House Price Index

On Tuesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the House Price Index (HPI). It measures the changes in the selling price of houses in the 8 state capitals in Australia.

Rising house prices indicate that investors are confident about purchasing houses. Hence, binary options traders consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.

Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals decreased by —-0.2%. Analysts were expecting it to increase by 0.1%. However, the actual figure came out much better than expected, at 1.0% increase.

Japan – Flash Manufacturing PMI

On Thursday, at GMT 12:30 a.m., the Markit will release the Japanese Flash Manufacturing PMI data. It measures the level of a diffusion index based on surveying around 500 purchasing managers in the country.

Binary options investors consider the Flash Manufacturing PMI figure to be a leading indicator of the Japanese economic climate. Because purchasing managers usually has the insight regarding business conditions such as employment, production capacity and new bulk orders and inventory situation.

Last month, the Japanese Flash Manufacturing PMI figure came out at 54.1. The forecast for this month is currently set at 54.3.

AUD/JPY Forecast

AUD/JPY analysis for Highlow on 20th March 2018The AUD/JPY broke below the downtrend line on February 2. Since then, the pair fell by around 585 pips over the last two months. However, after reaching the 81.50 level, it found a strong support at the end of February. As a result, the AUD/JPY started a bullish retracement that pushed the price towards the newly formed downtrend line. Over the last week, the pair once again turned bearish after the price failed to close above the downtrend line. Currently, it is trading just above the support near the 81.50 level.

The Australian house price index increased by 1% this month. On the other hand, analysts are expecting the Japanese Flash Manufacturing PMI to increase from 54.1 to 54.3 this month. We believe it would set a bearish fundamental outlook for the AUD/JPY this week. Therefore, if the AUD/JPY closes below the support near 81.50, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 81.50.

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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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