AUD/JPY Breaks Below Key Support Amid Strong Japanese Final Manufacturing PMI

AUDJPY – Technical Analysis for High Low

Japan – Final Manufacturing PMI

On Tuesday, at GMT 12:30 a.m., the Markit released Japan’s final manufacturing purchasing managers’ index (PMI) figure. It measures the level of a diffusion index by surveying around 400 purchasing managers in the country.

Businesses are the first to react to changing economic climate. The manufacturing PMI is calculated based on survey questions covering employment, production, price levels, new orders situation. Also, it is based inventory conditions. Hence, binary options traders 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 53.3. The forecast for this month was set at a reading of 53.3 as well. However, the actual final PMI reading came out slightly higher, at 53.8.

Australian – Trade Balance

On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the monthly Trade Balance figure. It measures the difference in value between all import and export. This figure also includes physical goods and intangible services.

The demand for export correlates with the demand for the Australian Dollar. Therefore, binary options investors analyse the monthly trade balance. They do so to gauge the strength of the AUD against other major currencies.

Last month, the Australian trade balance figure came out at 0.83 billion. The forecast for this month that it may come out slightly lower, at 0.68 billion.

AUD/JPY Forecast

AUD/JPY analysis for High Low - 2nd May 2018

The AUD/JPY turned bullish after breaking above the downtrend line on April 10, 2018. However, after reaching the near the 83.40, it found a strong resistance that pushed the price towards the downtrend line once again. Earlier this week, the AUD/JPY closed below the support near 82.50.

The Australian trade balance may come lower than last month’s 0.83 million to 0.68 billion. On the other hand, the Japanese Final Manufacturing PMI reading came out much better than last month’s 53.3 to 53.8. We believe it would set a bearish fundamental outlook for the AUD/JPY this week. Therefore, if the AUD/JPY continue to trade below the support near 82.50, 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 82.50.

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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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