AUD/JPY hits the top of our short-term watchlist today as volatility may pick up and we see an opportunity to play the longer-term slow trend higher.
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a channel pattern on EUR/USD, so be sure to check that out to see if there is still a potential play!
|Equity Markets||Bond Yields||Commodities & Crypto|
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Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar
Japan Average Cash Earnings at 11:30 pm GMT
Japan GDP, Current Account at 11:50 pm GMT
Australia New Home Sales at 12:00 am GMT (Jun. 8)
Australia Business Confidence at 1:30 am GMT (Jun. 8)
Japan Eco Watchers at 5:00 am GMT (Jun. 8)
Germany Industrial Production at 6:00 am GMT (Jun. 8)
Euro Area Employment Change, GDP at 9:00 am GMT (Jun. 8)
Germany ZEW Economic Sentiment at 9:00 am GMT (Jun. 8)
What to Watch: AUD/JPY
On the one hour chart above of AUD/JPY, we can see market is currently in rangebound mode, which actually goes back for a while. On the higher time frames, the pair has been in a slow grind higher since roughly February with volatility trending lower with each passing month.
So with that longer-term context in mind, this pair is one to watch for a potential short-to-medium term buying opportunity if the market dips to the previous support area. It could be in the process of topping out at the moment as resistance is forming once again at the 85.00 major psychological level, so a dip may not be to far away.
We may get help from a somewhat busy Asia session calendar, filled with mid-tier economic events to potentially get the pair moving. The most notable may be Japan’s GDP update or Australia’s business confidence update, but it’s likely there won’t be any massive moves without a massive surprise to the data or a surprise news event.
And if the pair doesn’t dip before the event releases, then we’ll be on the lookout for an upside break of the resistance area around 85.00. If the market can break above and create a break-n-retest pattern at 85.00, then a long position is sometime to consider if Australian data is positive and/or broad global risk sentiment is leaning positive on the session.