AUD/JPY – Technical Analysis for Australian Brokers[banner-group name=”banner-analysis-fx”]
Japan – Average Cash Earnings
Today, at GMT 1:00 am, the Japanese Ministry of Health, Labour and Welfare released the year-over-year average cash earnings, which measures the changes in the total value of employment income collected by workers in the country over the past 12 months.
Since earnings are directly correlated with consumer spending, binary options investors consider a rise in the average cash earnings as a signal that the Japanese consumers will likely increase their spending. As consumer spending makes up a large portion of the Japanese GDP, it can predict the future strength of the Yen.
Last month, the Japanese average cash earnings increased by 0.5% and the forecast for this month was set at a 0.5% increase. But, the actual figure came out much lower, at 0.1%.
Australia – Cash Rate
Tomorrow at GMT 4:30 a.m., the Reserve Bank of Australia (RBA) released the official cash rate, which is the interest rate that major Australian banks and financial institutions pay to borrow funds held at the RBA.
Since short-term interest rates are the primary factor in the valuation of the Australian Dollar against other major currencies, binary options traders pay close attention to any changes in the official cash rate.
The RBA left the cash rate at 1.5% in their last meeting and the forecast for this month is that the RBA will leave the cash rate unchanged at 1.5% for the time being.
Trade Recommendation for the AUD/JPY
Since the US Presidential Election result came out on November 9, 2016, and the AUD/JPY experienced substantial volatility, the pair remained bullish for the last few months. However, over the last few weeks, the AUD/JPY remained range bound between 85.00 and 87.00 levels.
As the Reserve Bank of Australia is expected to leave the cash rate unchanged at 1.5% for the time being, but the Japanese average cash earnings growth rate declined from 0.5% to 0.1%, it would likely help to continue the bullishness of the pair from a fundamental point of view.
Hence, if the AUD/JPY price penetrates above the 87.00 level in the next few days, it would likely attract additional bullish momentum in the market.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/JPY with their Australian brokers as soon as the price closes above the 87.00 level on the daily timeframe.
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