AUD/JPY – Technical Analysis for Binary Options Australia
Australia – CB Leading Index
Today, at GMT 4:30 p.m., the Conference Board Inc released the month-over-month leading index for Australia, which measures the changes in the level of a composite index based seven other major fundamental indicators.
Since the CB leading index aggregates some of the other indicator data, binary options traders consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.
Last month, the CB leading index increased by 0.3% and this month, it increased slightly higher, at 0.4%.
Japan – Trade Balance
On Wednesday, at GMT 11:50 p.m., the Japanese Ministry of Finance will release the month-over-month national trade balance figure, which measures the difference in value between the total imported and exported goods over the last month. This data is usually reported by being seasonally adjusted in order to gauge the true changes in the trade balance situation of Japan.
The demand for a nation’s currency is directly correlated to the export it makes minus the net imports because foreigners must convert their currency to Yen in order to pay Japanese exporters. Hence, binary options Australia investors and market analysts consider the trade balance to be a leading indicator of a currency’s strength.
Last month, the Japanese trade balance figure came out at 0.16 trillion (yen) and for the forecast for this month is set at 0.55 trillion.
Trade Recommendation for the AUD/JPY
Since September 27, 2016, the AUD/JPY has remained in a strong uptrend and climbed up by around 400 pips and formed an uptrend line in the process.
However, after reaching near the 87.50 level, the AUD/JPY found strong resistance. For the last few weeks, the AUD/JPY price kept trying to break above this resistance but so far only managed to penetrate it once on February 15, 2017.
As the Japanese trade balance is expected to have a minor increase, but the Australian CB leading index only increased from 0.3% to 0.4% this month, we believe it would likely set a bullish fundamental outlook for the AUD/JPY. Hence, if the AUD/JPY price penetrates and closes above the resistance near 87.50 level, 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 binary options Australia brokers as soon as the price closes above the 87.50 level on the daily timeframe.
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