AUDJPY – Binary Options Technical Analysis
Australia – Consumer Price Index
On Wednesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter consumer price index (CPI) figure that measures the changes in the price of goods and services bought by Australian consumers in the last quarter.
Since the consumer price index is primarily used by the Australian central bank to measure inflation, any significant change in the CPI often makes the Forex market extremely volatile. Also, as the inflation at the retail level has a big influence on the central bank’s future monetary policy. Hence, it is considered by binary options traders to be a leading indicator of the Australian economy.
Last quarter, the Australian consumer price index increased by 0.2%, and the forecast for this quarter is set at an increase of 0.2% as well.
Japan – Household Spending
On Friday, at GMT 12:30 a.m., the Japanese Statistics Bureau will release the year over year Household Spending figure, which measures the inflation adjusted value of all expenses by the Japanese consumers.
Binary options investors consider the household consumer spending to be a leading indicator of a country’s economic health. This is because the amounts spent by consumers have a ripple effect on the overall economic activity in the country.
Last month, the year over year Japanese Household Spending figure decreased by 4.6% and the forecast for this month is currently set at an additional decrease of -2.6%
Trade Recommendation for the AUDJPY
Since breaking above the downtrend line in July 14, 2016, the AUD/JPY has been gradually trending up. Over the last few months, the AUDJPY also formed an uptrend line, which was last tested on September 30.
Last week, the AUDJPY broke above the important psychological resistance near 79.00 level, but by Friday, the price closed below this pivot zone. However, since today’s Tokyo session opening, the AUDJPY has climbed around 40 pips, and now trading at 79.35.
As the Japanese household spending is expected to decline again over the last month, and the Australian consumer price index is expected to increase by 0.2%, the fundamental outlook for the AUDJPY would likely remain bullish for the next few days.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUDJPY with their binary options brokers as soon as the price closes above the79.50 level on the daily time frame.
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