AUDJPY Supported Below Ichimoku Cloud
G'day mates! Our Aussie friends are about to make their rate decision in a couple hours. So far a key Fibonacci level has AUDJPY supported below the daily Ichimoku cloud. Here is a quick IDDA approach to develop an AUDJPY trading strategy once the results are out.
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1- Fundamental Points
Here at Invest Diva, we don't speculate. We believe that is the recipe to failure. Instead, we wait-out the results and then make an investment decision.
Now during their previous rate decision, the RBA was pretty upbeat about the Aussie economy as it carries on with the transition away from mining-led growth.
Last time they said that low interest rates and the Aussie’s depreciation have helped support export activity and non-mining business investment. As for the global economy, they said rising commodity prices have been good for our mated Down Under but there could still be some risks from China.
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This week, the RBA is still expected to keep interest rates unchanged at 1.50% while maintaining most of its relatively upbeat assessment of the economy.
Any negative change in the monitory policy statement could push Mr. Aussie down and under (pun intended) our key support level.
This brings up to the second point of IDDA: Technical analysis.
2- Technical Points: AUDJPY Supported by Fibo
After breaking below the daily Ichimoku cloud on March 23rd, the 23% Fibonacci level has got AUDJPY supported at 84.18. However the Tenkan line has also broken below the Kijun line (talking about the dead cross.)
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3- Market Sentiment
Expect volatility during the Asian session. Majority of traders were net-short the AUDJPY pair before the release which gives us a bit of a bullish bias.
AUDJPY Supported - Trading Strategy
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Here are Invest Diva's calculations for important approximate levels for GBPUSD range to keep an eye on:
|Support Levels||Turning Point||Resistance Levels|
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