Chart of The Day AUDJPY
AUDJPY Potential Reversal Zone & Probable Price Path
AUD: Australia reported upbeat job numbers: Australia added more jobs than expected in October. Headline new employment numbers totaled 178.8k in October (Sep: -29.5k). This reflects gain in both the full-time (+97k) and part-time (+82k) segments. Unemployment rate rose to 7.0% (Sep: 6.9%) as participation rate went up (65.8% vs 64.8%) which indicates the return of workers into the workforce. Australia’s preliminary October retail sales data rose 1.6% from September, with Victoria’s largest increase of 5.2%
JPY: Sharper fall in Japan’s core CPI: Deflation in the US deepened further in Japan as the CPI ex-fresh food, the BOJ’s main gauge of inflation fell 0.7% YOY in October (Sep: -0.3%). This was core inflation’s steepest decline recorded since the first quarter of 2011, reflecting the impact of the pandemic on Japan’s already subdued prices. The number of newly confirmed Covid-19 cases in Tokyo exceeded 500 for the first time in a single day, and the alert level will be raised to the highest level. Tokyo Governor Yuriko Koike urged people to wear masks when going out, but did not require shops to close in advance
From a technical and trading perspective, the AUDJPY appears to have completed an interim correction versus the early November advance. As any further downside remains capped by the 75.36 pivot, bullish exposure should be rewarded back through the 76.00 handle, bulls will look for the prior swing high at 77.00 to be vaulted en-route to retest of the prior cycle highs at 78.00, from here the equality objective at 79.28 is the primary objective of the measured move. A failure to defend the 75.36 low would open a deeper dip to 74.00 before another upside attempt may be seen.
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