With markets taking cues from danger sentiment nowadays, I’m pondering a breakout on this pair is certain to occur eventually.
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out NZD/JPY testing an space of curiosity whereas ready for headlines on Russia. Make sure you take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Information:
Danger-on flows pickup on potential Putin-Biden assembly
OPEC ministers agree to stay to present output deal to forestall shocks
Japanese flash manufacturing PMI down from 55.4 to 52.9
German producer costs rose 2.2% vs. projected 1.6% achieve
French flash companies PMI advance from 53.1 to 57.9 vs. 54.0 forecast
French flash manufacturing PMI up from 55.5 to 57.6 vs. 55.5 forecast
German flash manufacturing PMI fell from 59.8 to 58.5 vs. 59.6 consensus
German flash companies PMI up from 52.2 to 56.6 vs. 53.2 consensus
U.Ok. flash manufacturing and companies PMIs at 9:30 am GMT
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What to Watch: AUD/JPY
AUD/JPY 1-hour Foreign exchange Chart
With no main catalysts on deck early this week, market watchers are nonetheless paying shut consideration to headlines on the standoff between Russia and Ukraine.
Phrase by way of the grapevine is that Biden can be assembly with Putin to debate a listing of sanctions if Russia invades Ukraine. The Kremlin denies any plans for a summit, although.
Nonetheless, the prospect of Captain America – I imply, Uncle Sam – stepping in to try to save the day was sufficient to revive risk-off flows up to now.
AUD/JPY popped again as much as the highest of its symmetrical triangle seen on the hourly chart and may try a bullish breakout. If that occurs, the pair could possibly be in for a rally that’s the identical peak because the formation or roughly 225 pips.
I’m seeing hints of a bullish transferring common crossover, supporting the potential for a break larger and uptrend. Nonetheless, Stochastic appears prepared to show south from the overbought zone to point that sellers are returning.
In that case, AUD/JPY may stoop again to the triangle backside across the 82.50 minor psychological mark to seek out extra consumers or maybe try a break decrease.
Higher maintain tabs on headlines to be prepared for any adjustments in danger sentiment!
