AUDJPY – Aussie Dollar Trend Overwhelmingly Bearish Vs Japanese Yen07 September, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis
AUDJPY – Aussie Dollar Trend Overwhelmingly Bearish Vs Japanese Yen
- The Aussie dollar after a solid uptrend versus the Japanese yen, started moving down sharply.
- There was a monster bullish trend line formed on the hourly chart of the AUDJPY pair, which was broken during the recent downside move.
- Today in Australia, the Gross Domestic Product was released by the Australian Bureau of Statistics.
- The forecast was slated for an increase of 0.6% in Q2 2016, but it came in at 0.5%.
AUDJPY Technical Analysis
The Aussie dollar enjoyed good gains this week against the Japanese yen, as the latter one was under a bearish pressure. Later, the AUDJPY pair found sellers and started a downtrend and may continue to decline moving ahead.
The AUDJPY pair recently traded below the 78.00 support and currently struggling to find buyers. The pair also closed below the 100 hourly simple moving average, which is a bearish sign.
It looks like there are more declines left and the pair may head towards the last swing low of 77.08, as it already broke the 61.8% Fib retracement level of the last wave from the 77.08 low to 79.13 high.
Australian Gross Domestic Product
Today in Australia, there was a major release, as the Gross Domestic Product, which is a measure of the total value of all goods and services produced by Australia was released by the Australian Bureau of Statistics.
The forecast was slated for an increase of 0.6% in Q2 2016, compared with the previous quarter. However, the outcome was disappointing, as there was a rise of 0.5%.
In terms of the yearly change, the Australian Gross Domestic Product was forecasted to rise by 3.2% in Q2 2016, but it came in at 3.3%. However, the result failed to help the Aussie dollar and ignited a downside move.
Japanese Foreign-Exchange Reserves
Today in Japan, the Foreign-exchange reserves, which in a strict sense are ‘only’ the foreign currency deposits and bonds held by central banks and monetary authorities was released by Ministry of Finance.
The outcome was mixed, as it posted a reading of $1,256.1B in August 2016, compared with the last reading of $1,264.8B.
No doubt, it looks like the Japanese yen was under pressure, but it seems to be recovering now.