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AUDJPY Tests Ichimoku Cloud’s Upper Band


Sep.28.2016

AUDJPY Tests Ichimoku Cloud's Upper Band

Mr. Aussie is doing it again mates! Today he's shaking is across the Japanese Yen as AUDJPY tests Ichimoku cloud's upper band. Read on for Invest Diva's IDDA approach to strategy development.

AUDJPY tests Ichimoku cloud upper band - Kiana Danial with Orbex AUDJPY tests Ichimoku cloud upper band - Kiana Danial with Orbex

 

AUDJPY Tests Ichimoku Cloud's Upper Band | Technical Analysis

On its way to form a potential Triple Bottom chart pattern on the daily chart, AUDJPY tests Ichimoku cloud's upper band as Mr. Aussie (aka Australian dollar) gain popularity among bulls. While the cloud is pretty flat, a confirmation above the cloud could signal short-term up-moves towards pivot line of 78.55. Resistance levels are set at 81 and 85 in extension.

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As general consolidation continues for third straight month, support remains at 76.40. Long-term support is at 72.43

 

AUDJPY Tests Ichimoku Cloud's Upper Band - Technical Analysis AUDJPY Tests Ichimoku Cloud's Upper Band - Daily Chart

 

Hot Market Moving Events Coming Up...

On the economic calendar on Thursday during the New York session the US will dump a ton of data right at 12:30 PM GMT including Gross Domestic Product (GDP), and Initial Jobless Claims.

 

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Fed head Janet Yellen is due to address minority banking at 8 PM GMT.

 

During the next day’s Sydney session New Zealand will release their Building Permits (MoM) (AUG) at 9:45 PM.

 

Also on Friday’s Asian session China released their Manufacturing PMI for September and Japan released their Annualized Housing Starts.

 

Moving on to the London session, the UK is expected to release their GDP and Index of Services at 8:30 AM GMT, the EU will release their Unemployment Rate (AUG) and Consumer Price Index  at 9 AM.

Later during the New York session Canad will release their GDP at 12:30 PM GMT, and the Revised UoM Consumer Sentiment will be out of the US at 2 PM to end the trading week.

 

Market Sentiment - AUDJPY Tests Ichimoku Cloud's Upper Band

The Majority of Aussie traders are currently bearish on the currency comparing to its cross dancing partners.
Using this as a contrarian indicator,  current sentiment and recent changes gives a further bullish trading bias.

Trading Strategy - AUDJPY Tests Ichimoku Cloud's Upper Band

Putting the technical, fundamental and sentimental points of the IDDA approach together, the medium-term bullish strategy could prevail.

Bullish Scenario:

Short Term: Target 78.55.

Medium term: Wait for a confirmation above 78.55. Then depending on your risk tolerance, you can target 81 or 85 in extension.

 

Bearish Scenario:

Only a break below the Ichimoku cloud would change our medium-term outlook back to bearish.

Stay tuned for market updates and signals on that my fellow invest divas.

 

Here are Invest Diva's calculations for important AUD/USD approximate levels to keep an eye on:

Support Levels Turning Point Resistance Levels
72.43 78.55 81
76.40 76.40 85

 

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Kiana 喜愛成
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