Chương 26 Will The Producer Price Index give strength to the JPY?
09/04/2023
Summary
Japan's high-impact news leads the market.
Fundamental analysis
Fundamentally on this pair of AUDJPY, we have high-impact news in Japan coming on Monday and Wednesday Trade balance and the producer price index with positive expectations and they will give the Japanese yen strength on the other hand we do not have any high-impact news in Australia.
Japan Trade balance
Previous -3181.755B
Expected -517.8B
The Producer Price
Previous -0.4%
Expected -0.3%
Technical analysis
In this 4-hour diagram chart, the market price now is 88.074, we expect the market to push the price up to the previous supply zone at 89.200 and then expect the price to turn down to the previous demand zone at 87.500 and pull back to test the price at the miner supply zone which is where the price right now and we expect the price to keep pushing down to the oldest demand zone at 86.800 creating lower high and lower low formation with 20 moving average pointing down.
Trading Recommendation
Trading Direction: Short
Entry Price: 88.660
Target Price: 86.857
Stop Loss: 89.555
