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AUD/JPY opens the week higher, but gap threatens to close

2018-5-28 11:03:41Market Analysis
AUD/JPY opens the week higher, but gap threatens to close

The AUD/JPY is trading just beneath 83.00 after a bullish gap to start the new week's trading.


The Aussie gapped higher by a tidy 40 pips to open the new week, and is trading close to 82.90 after trying and failing to retake the 83.00 major level several times last week. The pair traded flat for the latter half of last week following a quick decline from near the 84.50 level spurred on by a sudden flight to safety that saw the Yen rise against weaker currencies as recent market hopes of successful and peaceful resolutions to current US-led trade negotiations and geopolitical tensions appeared to be largely unfounded, draining last week's opening bid for risk appetite.


This week is shaping up to be a quiet showing for the Aussie, and the early week's schedule is clear of any Australian macro figures, while the Yen will see the Unemployment Rate and Jobs/Applications Ratio indicators at 23:30 GMT. The Unemployment Rate is expected to hold steady at 2.5%, and the Job's/Applicant ratio is expected to shift upwards slightly from 1.59 to 1.6.


AUD/JPY levels to watch


Daily candles have the pair still lifting from a higher low at early May's swing point near 81.15, and the pair could be developing some support from the 50.0 Fibo level around 82.85, with last week's high of 84.50 putting in a two-month high for the pair as Aussie bulls continue to push from recent fourteen-month lows.