China’s latest vaccination push is propping up risk-taking!
Will the news be enough to firmly bust AUD/JPY out of its Double Bottom pattern?
Before moving on, ICYMI, yesterday’s watchlist looked at AUD/CHF’s descending triangle pattern amidst concerns about China’s COVID policies! Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
ECB Pres. Lagarde: inflation hasn’t peaked, ECB has “a way to go” with rate hikes
FOMC’s Bullard: Fed likely to keep rates above 5% into 2024 to tame inflation
Crypto lender BlockFi, 8 affiliates file for bankruptcy; point out FTX exposure as reason behind collapseJapan’s retail sales expands by 4.3% y/y in October vs. 5.0% uptick expected and September’s 4.8% growth
Japan’s unemployment rate unchanged at 2.6% in October
China property sector surges on fundraising support, but COVID protests cloud outlook
Asian shares rally on China reopening speculations
Oil rises as market weighs OPEC+ supply rebalance
Crypto exchange Bitfront shuts down
European shares rise on China vaccination news
Upcoming Potential Catalysts on the Forex Economic Calendar:
Switzerland’s quarterly GDP at 8:00 am GMT
UK’s mortgage approvals at 9:00 am GMT
UK’s net individual lending at 9:00 am GMT
Canada’s monthly GDP at 1:30 pm GMT
US house price index at 2:00 pm GMT
BOE Gov. Bailey to testify before the Lords Economic Affairs Committee at 3:00 pm GMT
NZ building consents at 9:45 pm GMT
Japan’s preliminary industrial production at 11:50 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/JPY
AUD/JPY 1-hour Forex Chart
In case you missed it, China’s authorities recently shared that as of Monday,65.8% of people aged 80 and above have received their COVID booster shots. That’s up from 40% back in November 11!
The increased vaccination of the more vulnerable population would help put China on its path to reopen its economy.
The prospect of reopening sooner than later is welcome news for risk-takers who are already buying “risk-friendly” assets like commodity-related currencies.AUD/JPY, which is sporting a Double Bottom pattern on the 1-hour time frame, just spiked higher after consolidating at the pattern’s “neckline.”
Will we see a sustained upside breakout?
Look out for the 93.25 zone that served as a support level in the last two weeks.
If AUD/JPY busts above the previous support zone, then it could make a play for the 94.00 previous resistance area.
A return to AUD selling, on the other hand, opens AUD/JPY to a trip back to its weekly lows.
What do you think? Which way will AUD/JPY go in the next trading sessions?
