AUDJPY – Buy Aussie Dollar Vs Japanese Yen Post Employment Report?20 October, 2016 by Aayush Jindal in Market Analysis, Technical Analysis
AUDJPY – Buy Aussie Dollar Vs Japanese Yen Post Employment Report?
- The Aussie dollar after trading as high as 80.02 against the Japanese yen started correcting lower.
- There is a crucial bullish trend line formed on the 4-hours chart of AUDJPY, which may act as a support around 78.80.
- Today, the Australian Employment Change released by the Australian Bureau of Statistics posted a change of -9.8K in Sep 2016.
- The Australian Unemployment rate came in at 5.6%, compared with the forecast of 5.7% in Sep 2016.
AUDJPY Technical Analysis
The Aussie dollar climbed higher this week to challenge the all-important 80 handle versus the Japanese yen. However, there was a rejection in AUDJPY. Let us see whether the pair can bounce one more time or not.
The pair is currently correcting lower, and may trade towards the 38.2% Fib retracement level of the last wave from the 77.74 low to 80.02 high, which may act as a support area.
Moreover, as mentioned, there is a crucial bullish trend line formed on the 4-hours chart, which can be considered as a buy area if the pair moves down. On the upside, a break above 80.00 might clear the path for further gains in AUDJPY.
Australian Employment Change
Today in Australian, Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics.
The market was expecting a change of 15K in Sep 2016, compared with the last change of 3.9K. However, the result was lower, as there was a change of -9.8K. The Australian Unemployment Rate was forecasted to increase from the last reading of 5.6% to 5.7% in Sep 2016, but it remained at 5.6%.
The report added that “Unemployment decreased 12,500 to 705,100. The number of unemployed persons looking for full-time work decreased 7,400 to 492,300 and the number of unemployed persons only looking for part-time work decreased 5,100 to 212,800”.
Overall, the report was mixed, but helped the AUDJPY pair to remain above the key support levels.
US Initial Jobless Claims
Today in the US, the Initial Jobless Claims figure will be released by the US Department of Labor. The market is expecting an increase in the number of people filing first-time claims for state unemployment insurance from the last reading of 246K to 250K. Any major increase in the claims may put a minor pressure on the greenback in the near term.