The ongoing gentle slide in AUD/JPY received a push from this morning’s weaker than expected wage data. Inflation and wages growth are the missing ingredients from the Australian recovery cake. An annualised growth rate of just 2%, despite a boost from an increase in minimum wages, will draw further doubts about interest rate rises.
Naturally this could weigh on the AUD. After testing support around 86.70 over the previous two sessions the extra weight puts AUD/JPY firmly in a danger zone between 86.70 and 85.70. A breach of the lower bound could start a tumble towards the major support closer to 81.50.
Recent Forex moves are glacial. I’m approaching this as a swing trade, giving the position weeks or even months to reach my target. The entry is important, so I’m placing a stop entry order in case the moves occur while I’m away from the screen:
