Today we would talk about the AUD/JPY currency pair. In our previous report we recommended selling the pair after breaking the channel which you can see in the chart. We sold the pair at 83.60 and booked our profit at the first target level at 82.00.
The yen’s gains mirror the continuing trouble for the Trump Administration, which is jumping from one crisis to another. Last week Trump’s cabinet was rocked by reports that he had asked former FBI director James Comey to end an investigation into connections between Russia and the Trump campaign team during the US presidential election. As a result, the pair rose back again directly after touching the 38.2% from the large upside wave which started after Brexit and lasted till February 16.
The AUD/JPY is trading now at 83.20 below a downside trend line which supports our negative predictions for the next days. Especially considering that the prices are trading below the Moving Average 50 (which is a resistance level), the pair may decline after touching the SMA.
The Next Few Days
After this analysis we can sell the pair now at the current prices if the pair doesn’t break the SMA up. We can sell it again if it reaches the downside trend line at 83.90, keeping our first target at 82.20 and the second one at 80.35 - that's in case the pair is still trading below the trend line.
This week the market doesn’t have any hot news from Australia and Japan but we have to be careful about any unusual tidings as they may change the market direction.
