Elliott Wave Analysis: AUD/JPY Turning Bullish Again

Why is the yen weak?

The USD is mostly lower, but not against JPY which is falling sharply as stocks turned up lately. One of the reasons for the weak JPY is also BoJ policy which is on a completely different page compared to other CB, so this divergence is something that is driving the JPY lower across the board.

Aussie fundamentals

We see commodity currencies still very strong, with Aussie being very bullish lately on RBA hawkish view and also because of CNH that turned higher as China is mostly returning back to normal economic activity.

AUD/JPY technical analysis and trading opportunities

We see AUDJPY making a nice break out of a downward channel with room for more upside since we think that drop from 95.81 was corrective. As such, we think that upside can be an impulse in progress, thus there can be opportunities to join the trends after fourth wave retracements, while the market trades above 91.10.

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Gregor