AUD/JPY Broke Uptrend Line and Set to Test Key Resistance Near 82.75

AUDJPY – Technical Analysis for Binary Options Brokers

Australia – MI Leading Index

On Tuesday, at GMT 11:30 p.m., the Melbourne Institute will release the month-over-month MI Leading Index figure. It measures the level of a composite index based on 9 economic indicators.

The MI Leading Index is primarily designed to predict the direction of the economy and institutional investors pay attention to this index. Also, key policy makers in Australia follow the index as it is derived from a combination of a total 9 economic indicators. Hence, it is considered by binary options traders to be a leading indicator of the Australian economy.

Last quarter, the MI Leading Index in decreased by -0.1%. If the trend continues and it decreases again, it will have a bearish effect on the Australian Dollar.

Japan – Flash Manufacturing PMI

On Friday, 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 52.9. The forecast for this month is currently set at 53.0.

AUD/JPY Forecast

The AUD/JPY remained in a strong downtrend over the last few months. However, after forming a bullish pin bar on October 26, it started an uptrend and broke above the downtrend line on November 6, 2018. Last week, it tested the resistance near 82.75 several times, but failed to close above it.

The MI Leading Index went down last month, but it has been fluctuating for the last several months. On the other hand, the Japanese flash manufacturing index is set to go up only by 0.01 point to 53.0. We believe it would not set any bullish or bearish fundamental outlook for the AUD/JPY this week. However, based on technical analysis, there is a chance that the current bullish momentum will prevail.  Therefore, if the AUD/JPY closes above the resistance near 82.75, 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 82.75.

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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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