Originally Updated: 06:57
Currency Pair: AUD/JPY
Sentiment: Short term bullish
Market focus:In today’s trade set up we will be focussing on short term buying opportunities on the AUD/JPY.
Fundamentals:The Yen weakened after a media report fuelled speculation the GPIF will raise its target for foreign bonds and shares to about 30 percent from 23 percent. On top of this we had BOJ Governor Kuroda reiterating that policy makers would maintain monetary easing until the inflation rate stabilizes at 2 percent. We will look to trade the Yen against the AUD after a Chinese government official said the central bank is planning to inject funds into some lenders which is likely to lead to bullish moves in the AUD.
Technicals:
We have a nice confluence zone at 93.75-93.60. This should offer short term support for any pullback.
Stop loss could be placed at 93.25
First take profit target: 94.20
Second take profit target: 95.00
Trade management: After target 1 hit stop loss could be moved to breakeven
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