AUD/JPY is hitting a key resistance zone forward of top-tier information releases!

Will we see a breakout in the present day? Or will the consolidation sample maintain for one more day?

Let’s check out AUD/JPY’s 1-hour chart for clues!

AUD/JPY 1-hour Foreign exchange Chart by TV

I don’t know if you happen to seen however AUD/JPY bears have been efficiently limiting AUD/JPY’s uptrend by defending the 91.00 – 92.25 zone.

The truth is, AUD/JPY is now hitting the pattern line resistance, which is juuuust below the R1 (91.37) stage of in the present day’s Commonplace Pivot Factors.

It additionally helps AUD sellers that Stochastic is hanging round its “overbought” ranges.

Is AUD/JPY prepared to interrupt out of its pattern line resistance? Or will the symmetrical triangle sample maintain this week?

We have now a few potential catalysts to think about.

For one factor, China is dumping a bunch of producer and shopper information in a number of hours. Markets at present count on stronger main experiences from the world’s second-largest economic system however draw back surprises may most likely have a much bigger (bearish) affect on “dangerous” belongings like AUD.

World development considerations additionally lengthen to the U.S. with debt ceiling talks, retail gross sales experiences, and a bunch of Fed audio system scheduled between now and Australia’s jobs information.

Stories pointing to weaker U.S. financial development or a extra hawkish Fed could weigh on threat urge for food and pull AUD/JPY decrease.

Lastly, the Reserve Financial institution of Australia (RBA) can be printing its assembly minutes earlier than we see Australia’s jobs information. If the central financial institution seems to be extra hawkish than markets are already anticipating, then AUD may acquire assist and break above AUD/JPY’s resistance even earlier than the report’s launch.

For now, I’m maintaining shut tabs on how AUD/JPY reacts to its resistance space.

AUD/JPY’s day by day common volatility places the potential day by day excessive round final week’s highs (91.80ish) and day by day low on the 90.50 Pivot Level line.

Draw back surprises from China’s information dump can maintain the triangle sample intact and drag AUD/JPY to 90.50 if not the 90.25 zone.

But when the risk-friendly buying and selling surroundings extends to the subsequent buying and selling periods, then I’ll even be able to commerce a potential upside breakout and commerce retests of the 91.80 or 92.50 earlier highs.

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