We’ve got plenty of potential economic catalysts ahead from Japan and Australia, making the pop higher in AUD/JPY one to watch for the session!
Before moving on, ICYMI, today’s Daily London Session Watchlist looked at an opportunity forming on USD/JPY ahead of U.S. economic updates, so be sure to check that out to see if there is still a potential play!
|Equity Markets||Bond Yields||Commodities & Crypto|
DAX: 13614.30 -1.85%
FTSE: 6558.91 -1.43%
S&P 500: 3799.78 -1.29%
NASDAQ: 13487.28 -1.02%
US 10-YR: 1.016% -0.024
Bund 10-YR: -0.552% -0.019
UK 10-YR: 0.263% -0.002
JPN 10-YR: 0.039% +0.01
Oil: 52.49 -0.23%
Gold: 1,845.20 -0.30%
Bitcoin: 39,896.75 -7.59%
Ethereum: 1,241.85 -7.49%
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar
Japan Unemployment Rate, Tokyo CPI at 11:30 pm GMT
Japan Industrial Production, BOJ Summary of Opinions at 11:50 pm GMT
Australia PPI, private sector credit at 12:30 am GMT (Jan. 29)
Japan Consumer confidence at 5:00 am GMT (Jan. 29)
What to Watch: AUD/JPY
On the one hour chart of AUD/JPY above, we can see a pop higher in the pair at the start of the U.S. trading session. There doesn’t seem to be a catalyst for the dramatic intraday turn, which means it was likely a profit taking / technical rebound from yesterday’s extreme risk-off moves.
That’s bringing the pair back to a minor resistance pattern of lower ‘highs’ and previous resistance area around 80.30. Will the bears hop in once again if retested?
Well, we’ve got potential catalysts for AUD/JPY’s next move coming from Japan and Australia, with the most notable likely being Australia’s PPI number. If we see that disappoint, as well as disappointing economic updates from Japan, broad risk sentiment may take over once again.
That increases the odds that the 80.30 previous resistance area may hold and that we should be on the lookout for bearish reversal patterns there.
Of course, if risk sentiment stays strongly positive into the Asia session and Australian PPI data comes in better-than-expected, there’s a chance that the current move may be able to break the falling ‘highs’ pattern.
In the case that the pair falls before the end of the U.S. session, watch out for support and bullish reversal patterns 79.50 handle for a potential bounce if the bullish economic / sentiment scenario plays out.