Are risk-off flows selecting up right this moment?

If that’s the case, right here’s a channel-within-a-channel bearish setup on AUD/JPY that you need to see.

Earlier than shifting on, ICYMI, I’ve listed the potential financial catalysts that it is advisable to be careful for this week. Examine them out earlier than you place your first trades right this moment!

And now for the headlines that rocked the markets within the final buying and selling periods:

Recent Market Headlines & Financial Information:

Australia’s MI inflation gauge picked up from 0.2% to 0.9% m/m in Jan

Australian retail gross sales down by 3.9% y/y in Jan as anticipated

BOJ Gov Kuroda: Will search to hit 2% inflation goal in a sustainable method

Rumors swirl that Amamiya shall be subsequent BOJ Governor

Yen pairs hole sharply larger in early Asian session buying and selling

German manufacturing unit orders rebounded by 3.2% m/m vs. earlier 4.4% stoop, anticipated 2.1% acquire

OPEC Secretary Common: October oil output minimize was the correct transfer

Eurozone Sentix investor confidence index at 9:30 am GMT
U.Ok. building PMI at 9:30 am GMT
Eurozone retail gross sales at 10:00 am GMT
Canadian Ivey PMI at 3:00 pm GMT
RBA financial coverage choice at 3:30 am GMT (Feb. 7)

Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

What to Watch: AUD/JPY

AUD/JPY 1-hour Foreign exchange Chart by TradingView

Yen bears had been keen to put their bets early this week, main AUD/JPY to hole sharply larger.

Can the safe-haven foreign money get again on its toes quickly?

The pair continues to be inside a short-term descending channel, and it seems to be just like the near-term resistance may hold beneficial properties in examine.

In spite of everything, the 100 SMA already crossed under the 200 SMA to substantiate that the selloff is extra more likely to keep it up than to reverse. The 200 SMA even traces up with the channel prime so as to add to its power as a ceiling.

As well as, Stochastic is within the overbought area and is beginning to head south, so value may comply with go well with as sellers take over.

Don’t overlook that the pair can be edging under the mid-channel space of curiosity on a longer-term rising channel, which confirms that bearish stress is in play.

If that’s the case, AUD/JPY may fall again to the close by assist on the 90.50 space and shut the hole. It would even drop all the best way all the way down to the underside of the bigger channel nearer to 90.00!

Mid-tier financial information from the Land Down Beneath turned out blended right this moment, with retail gross sales printing a pointy 3.9% year-over-year decline as anticipated and the MI inflation gauge pointing to stronger value pressures.

Simply hold an eye fixed out for the upcoming RBA choice within the subsequent Asian session, because the central financial institution is anticipated to announce a 0.25% rate of interest hike.