WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: AUD/JPY slightly higher despite Chinese data

Posted by Edward Moya on Sep 14, 2015 9:30:51 AM

The Australian dollar started the trading week higher against all of its major trading partners, despite Chinese data over the weekend that came in below expectations. Both Chinese Industrial Production and Fixed Asset Investment releases suggest that Chinese government support will need to be increased.

Chinese Industrial Production in August increased 6.1% from a year ago, but much lower than the consensus forecast of 6.5%. China’s fixed-asset investment climbed to the slowest pace in 15 years.

Price action on the AUD/JPY daily chart shows that the bearish Gartley pattern that formed on May 14th could be over. Price is tentatively respecting the 82 handle and we could see a higher bounce as commodity currencies remain excessively oversold.

To the upside, key resistance may come from the 50-day SMA, which currently trades at 89.10. Major resistance may come from the 93.50 area. If by the end of the week, we see price close below the noted support level, downward momentum may target the 79.50 level.

The trade: Buy AUD/JPY at 85.25, with a stop loss at 84.75 and take profit at 86.75. The risk/reward ratio is 1:3

Edward J. Moya

Senior Market Strategist

WorldWideMarkets Online Trading

Topics: AUDUSD, china, aud/jpy, AUDJPY, Australia, china economic statistics


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!