AUDJPY low volatility zone keeping the pair below resistance

May 18, 2016 10:18

Equities is ranging,and most indices are on strong support, if they drop again then JPY pairs could drop a lot (more JPY strength). SP500 below 2040 is very bearish and DAX below 9800 is very bearish too. Additionally - RBA is signalling more rate cuts. Once this happens money will go back into JPY and we will see a stronger JPY again. Also it is very important to keep an eye for FOMC meeting today.

Technically POC is 79.70-80 (L3,38.2,EMA89,trend line cross) and the pair could reject towards 79.25. But if the retracement is going to be deeper, then next POC is 80.15-30 (78.6, H3, historical sellers). targets are 79.25 and only on a strong H1 momentum break or close below the level we could see 78.70.

Follow @TarantulaFX on twitter for latest market updates




Avatar-Admirals
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.