Partner Center Find a Broker

With Australia just printing upbeat CPI figures and no major reports due in the next trading session, this pair might simply carry on with its climb.

Before I show y’all my chart, check out the top headlines that moved the markets in the earlier sessions:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • German GfK consumer climate at 7:00 am GMT
  • Credit Suisse economic expectations index for Switzerland at 9:00 am GMT

What to Watch: AUD/JPY

AUD/JPY 1-hour Forex Chart
AUD/JPY 1-hour Forex Chart

This pair recently busted through a descending trend line to hint that a reversal is in the cards. This correction could give Aussie bulls a better opportunity to jump in.

Keep in mind that the Land Down Under just printed upbeat inflation readings, with the headline CPI coming in at 0.9% versus the 0.7% consensus and the trimmed mean figure inching higher from 0.3% to 0.4%.

Meanwhile the yen could enjoy a bit more action than the dollar, as traders steer clear of the U.S. currency ahead of the FOMC statement.

A continuation of risk-on flows stemming from the vaccine rollout might be enough to keep the higher-yielding Aussie supported against the safe-haven yen after all.

The 38.2% level looks like a strong support zone as it lines up with the former trend line resistance, but more buyers might be hanging out at the 80.00 major psychological mark at the 50% Fib.

The moving averages just made a bullish crossover to confirm that support levels are more likely to hold than break. In addition, Stochastic is approaching oversold territory to reflect exhaustion among sellers and a possible return in bullish pressure.