AUDJPY Lower
I like trying AUDJPY lower here.
AUDJPY has usually been a proxy for risk sentiment but has recently moved more in line with global yields likely due to the BoJ remained the only dovish central bank and not hiking rates. While i don't think this changes soon i think there are a couple things that are changing that could cause a move lower.
Oil is moving lower currently and is a pretty good indicator of where US yields are going. From this i'm expecting us yields and global yields to fall a little with inflation expectations also falling. We could then see AUDJPY move lower as it turns more into a proxy for risk sentiment again if the yield trade dies down.
There's a shooting star on the weekly chart which i think could have been the last push higher for a little while and a decent double top in oil.
USDJPY long is probably one of the most crowded trades in fx at the moment so i can see a change at the margin causing a move lower.
There's also the market worries of BoJ intervention worries recently which could provide a kicker if there is any further news.
Not trading/investment advise, feedback welcome!
AUDJPY has usually been a proxy for risk sentiment but has recently moved more in line with global yields likely due to the BoJ remained the only dovish central bank and not hiking rates. While i don't think this changes soon i think there are a couple things that are changing that could cause a move lower.
Oil is moving lower currently and is a pretty good indicator of where US yields are going. From this i'm expecting us yields and global yields to fall a little with inflation expectations also falling. We could then see AUDJPY move lower as it turns more into a proxy for risk sentiment again if the yield trade dies down.
There's a shooting star on the weekly chart which i think could have been the last push higher for a little while and a decent double top in oil.
USDJPY long is probably one of the most crowded trades in fx at the moment so i can see a change at the margin causing a move lower.
There's also the market worries of BoJ intervention worries recently which could provide a kicker if there is any further news.
Not trading/investment advise, feedback welcome!
Note
coming out at breakeven here and reassessing thursday or friday - i think we're dealing with quarter end and half year end right now so price action likely to remain choppy until then
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.