Markets Turn Attention To JPY After Suspected Intervention
Wed 4th October 2023 : Daily Forex Price Action
Today we’re looking at Trading Setups in:
- AUDJPY (Primary Focus Pair)
- CADJPY (Covered In Video)
- AUDUSD (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
A suspected intervention from the BoJ occurred yesterday after USDJPY rallied into the 150.00 prior resistance level.
JPY strengthened almost immediately across the board, including AUDJPY which fell from 94.60 to 93.00 in a matter of moments.
Our live forex strength vs weakness tables now reflect this JPY strength, with it now being the strongest currency on the day traders table.
After such a sudden move, is it likely to continue to strengthen further, and can we take advantage of it?
AUDJPY is one to watch after price failed to hold above the daily (D1) support of 95.80.
Looking at the H4 time frame we can see price was trading within a bullish channel, which broke to the downside on Tuesday 3rd October.
After the suspected BoJ intervention AUDJPY found support around the key Daily (D1) level at 93.00.
This could be targeted again by sellers if we saw the bearish momentum continue.
Currently on the H4 chart, price is finding resistance at the minor highs near 94.50.
Moving down to the H1 chart, you will see price is in a secondary phase, pulling back into 94.50.
Ideally we would want to see multiple confluences built here, which include a retest of the H1 50 SMA, a bearish turn on the stochastic, and bearish price action.
The more confluences we have the more confidence we have in the trading opportunity.
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