USD/JPY and AUD/USD Daily Forecast: Potential Trade Ideas on Monday
Recent economic data presents a mixed picture for currency markets, particularly impacting forecasts for the USD/JPY and AUD/USD pairs. Japan’s Capital Spending surged to 16.4% quarterly, significantly outperforming expectations and previous figures, suggesting robust corporate investment.
In Australia, the MI Inflation Gauge showed a slight contraction of 0.1% month-on-month, hinting at subdued inflationary pressures. Job advertisements declined by 2.8%, and building approvals decreased by 1.0%, signaling a cooling in both the job market and construction sector.
However, Company Operating Profits in Australia rose by 7.4% quarterly, far exceeding expectations and reflecting a positive corporate outlook.
These economic indicators suggest a complex environment for the USD/JPY and AUD/USD currency pairs. For USD/JPY, Japan’s stronger-than-expected capital spending could bolster the yen, indicating potential downward pressure on the pair.
Meanwhile, mixed signals from Australian indicators, including a notable increase in corporate profits against a backdrop of contracting job ads and building approvals, may lead to volatility in the AUD/USD pair.
Investors and traders should closely monitor these developments, as they could significantly influence the daily forecast for these major currency pairs, shaping market sentiment and trading strategies in the coming sessions.
USD/JPY Price Forecast: Technical Outlook
The USD/JPY pair marginally declined by 0.06%, positioning at 150.06. It hovers just below the pivot point of 150.25, indicating potential shifts in market sentiment. Key resistance levels are identified at 150.83, 151.22, and 151.62, which could cap upward movements.
Conversely, support is seen at 149.70, with additional floors at 149.27 and 148.92 offering potential stabilization points. The Relative Strength Index (RSI) at 43 suggests a lack of strong momentum either way, while the 50-Day Exponential Moving Average (EMA) at 150.27 marginally above the current price, hints at potential resistance.
Notably, an ascending triangle pattern suggests resistance around 150.828, with a triple top pattern applying pressure.
Despite trading below the 50 EMA, the USD/JPY’s support above 149.700 due to an upward trendline indicates a tussle between bearish and bullish forces.
In summary, the USD/JPY appears bearish below 150.27, but surpassing this threshold could tilt the bias towards bullishness.
AUD/USD Price Forecast: Technical Outlook
The AUD/USD pair experienced a slight decline of 0.02%, settling at 0.6520. Positioned just below its pivot point of 0.6532, the currency pair showcases potential fluctuations in the near term. Resistance levels are identified at 0.6558, 0.6583, and 0.6609, delineating possible ceilings for upward movements.
Support levels, conversely, are marked at 0.6490, 0.6470, and 0.6443, which could provide fallback positions in case of declines. The Relative Strength Index (RSI) stands at 51, indicating a neutral market momentum.
The 50-Day Exponential Moving Average (EMA) at 0.6525 slightly above the current price, hints at immediate resistance.
Notably, a downward trendline suggests resistance around the $0.6519 level, with bearish trend candles under the 50 EMA line potentially leading to a selling trend for the AUD/USD pair. However, an upward trendline at the 0.6490 level could offer support.
In essence, the AUD/USD pair appears bearish below 0.6525, with any break above this level potentially signaling a shift towards bullish momentum.
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