AUD/JPY – Technical Analysis for Australian Binary Options
Japan – Average Cash Earnings
On Tuesday, at GMT 12:00 a.m., the Japanese Ministry of Health, Labour and Welfare will release 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, Australian 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 0.7% and the forecast for this month is currently set at an additional increase of 0.6%.
Australia – Home Loans
On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the month-over-month home loans figure, which measures the changes in the number of new loans approved for owner-occupied homes.
Since most home purchases are financed by banks, the new home loan figure acts as an excellent gauge of how many qualified buyers are ready to take out home loans. Therefore, economists and binary options traders consider the changes in the new home loan figure to be a leading indicator of the overall economic situation in the country.
Last month, the Australian new home loans increased by 1.0% and the forecast for this month is set at an increase of 2.1%.
AUD/JPY Forecast
Since early June 2017, the AUD/JPY remained bullish and formed two distinct uptrend lines in the process, while going up by around 900 pips during the last few months. However, on October 25, the AUD/JPY broke below the second uptrend line and found a strong support around the 87.00 level. Currently, it appears to be in a retracement and gradually moving towards the resistance near the 87.90 level.
As the Japanese average cash earnings is expected to increase by only 0.6%, but the Australian home loans is estimated to increase by 2.1%, we believe it would set a bullish fundamental outlook for the AUD/JPY this week. Therefore, if the AUD/JPY closes above the resistance near 87.90, it would likely attract additional bullish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 87.90.
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