Forex Market: AUD/JPY daily trading forecast

Friday’s trade saw AUD/JPY within the range of 92.69-93.73. The pair closed at 93.45, gaining 0.37% on a daily basis.

At 7:27 GMT today AUD/JPY was up 0.39% for the day to trade at 93.83. The pair broke the first key daily resistance and touched a daily high at 94.22 at 4:00 GMT.

Fundamentals

Aussie up on Chinas government officials statement

Australian dollar received support after on October 17th a government official from China said that the central bank is intending to provide national and regional lenders with about 200 billion yuan (32.7 billion USD) in order to help them satisfy year-end liquidity needs. Last month the Chinese central bank injected 500 billion yuan into the first five largest banks in the country. China is Australias largest trading partner.

Japan’s Pension Fund report

According to the Nikkei newspaper, the $1.2 trillion Government Pension Investment Fund (GPIF) is to boost its target for foreign bonds and shares to almost 30% from 23%. The planned review of fund’s assets may occur as late as December, because of different views on the best timing, expressed by fund officials, its investment committee and the health ministry, according to Takatoshi Ito, a government adviser. The yen lost ground against its major peers, following this announcement.

“The fact that they’ve put numbers on the reallocation implies that they’re closer to implementing it and the flows actually occurring,” said Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd. in Auckland, cited by Bloomberg News. “Markets will be looking at those flows as supportive for equity markets and outflows from Japan, which would both be negative for the yen based on current correlations.”

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 93.29. In case AUD/JPY manages to breach the first resistance level at 93.89, it will probably continue up to test 94.33. In case the second key resistance is broken, the pair will probably attempt to advance to 94.93.

If AUD/JPY manages to breach the first key support at 92.85, it will probably continue to slide and test 92.25. With this second key support broken, the movement to the downside will probably continue to 91.81.

The mid-Pivot levels for today are as follows: M1 – 92.03, M2 – 92.55, M3 – 93.07, M4 – 93.59, M5 – 94.11, M6 – 94.63.

In weekly terms, the central pivot point is at 93.23. The three key resistance levels are as follows: R1 – 94.75, R2 – 96.04, R3 – 97.56. The three key support levels are: S1 – 91.94, S2 – 90.42, S3 – 89.13.