AUD/JPY Implied Volatility Rises Ahead Of Key Employment Set [Video]

Matt Simpson, CFTe, MSTA CityIndex

Volatility may have subsided on AUD/JPY (for now) yet rising implied volatility and Thursday's employment figures from Australia may have other plans for the cross. Matt Simpson takes a technical look at two emerging patterns on AUD/JPY.

RBA released their minutes yesterday, although it didn't reveal much information regarding policy than we'd garnered from their statement; they're not quite as dovish as they were leading into June's latest cut, they ‘may' cut rates again if need be but they remain glued to the incoming data.

Tomorrow's employment set could be a key driver for the Aussie, particularly if it underwhelms. With lower rates being justified to help speed up employment growth (and therefor wages and inflation), this data set could be the difference between RBA remaining sat on the sidelines again or cutting for a 3rd time this year. And with those expectations, it could take AUD.

For today's video we take a look at AUD/JPY, which shows two potential (and opposing) patterns whilst implied volatility leads ahead of realised volatility.

Author

Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

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