AUDJPY Bearish Divergence Signals Downtrend Likely Continue

AUDJPY  Forecast & Technical Analysis

Japan – Unemployment Rate

On Thursday, at GMT 11:30 p.m., the Japanese Statistics Bureau will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.

One of the main goals of the Bank of Japan is to keep the unemployment as low as possible. So, Highlow binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Japanese economy. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Japan came out at 2.4%. This month, analysts are expecting it to remain unchanged at 2.4%.

Australia – Private Sector Credit

On Friday, at GMT 1:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data. It measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

Binary options traders consider the private sector credit to be an important fundamental indicator of the Australian economy. Because borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.2%. The forecast for this month is currently set at an increase of 0.2% as well.

AUDJPY Forecast

AUDJPY Forecast - 25th June 2019

On May 6, 2019, the AUDJPY broke below the major support level around 77.50. Since then, it fell by around 360 pips. However, after reaching near the 73.90 level, the AUDJPY formed a bullish pin bar on June 18. So far, the price has failed to break below this support. However, the Stochastics indicator is showing a significant bearish divergence.

The Australian private sector credit will likely go up by 0.2%, same as last month. On the other hand, the Japanese unemployment will also likely remain stable at 2.4%. We believe it would not set any fundamental direction for the AUDJPY this week. Under the circumstances, traders should focus on the developing bearish divergence and pay attention to technical analysis. Therefore, if the AUDJPY closes below the support near 73.92, it would likely attract additional bearish momentum in the market.

Hence, High Low binary options traders should look out for trading opportunities below this major support level around 73.92.

 

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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