Aussie Dollar Primed for Gains against Yen

Key Highlights

  • Aussie Dollar traded higher versus the Japanese Yen, and looks set for more gains in the near term.
  • Australian National Australia Bank Business Confidence released during the Asian session came in at 10, up from the previous revised reading of 8.
  • Australian NAB Business conditions were also up from the last revised reading of 6 to 11 in June 2015.

Australian National Australia Bank Business Confidence

There was a major release in Australia, as the National Australia Bank Business Confidence, which is a survey of the current business condition in Australia was published. The outcome was on the higher side, as the business confidence increased from 8 to 10 in June. The previous reading was also revised up from 7 to 8. The report stated that “Firms appear to have shrugged off risks in the global economy as the business environment continued to improve into June. While there were some unexpected variations across industries, business confidence lifted again”. The latest Business Confidence is at the highest level since September 2013.

Moreover, the Australian National Australia Bank Business Conditions figure was also above the expectation. It was up from the previously revised reading of 6 to 11 in June 2015. The report highlighted that improvements in both confidence and conditions over recent months are starting to suggest a more convincing turnaround in the non-mining sectors is underway.

AUDJPY Technical Analysis

The Aussie Dollar was seen gaining traction against the Japanese Yen, as the AUDJPY pair after declining towards 91.20 support area moved back higher. There is a contracting triangle pattern formed on the hourly chart, which is acting as a catalyst for more upsides. The best part is the fact that the pair is above the 100 hourly simple moving average.

AUDJPY

If buyers manage to take it above the 200 SMA, and the triangle resistance area, then it might open the doors for a move towards the last swing high of 92.40. The hourly RSI is above the 50 level, suggesting that buyers are in control, and may attempt to take the pair higher in the near term.

On the downside, the triangle support area holds the key for more losses moving ahead.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

Aayush's latest posts