The release of employment data in Australia today has many traders focused on the AUD. The bulk of them are looking at AUD/USD, but ranging across the AUD pairs can offer clearer technical signals - like the potential trade unfolding in AUD/JPY right now.
Here's the chart:
The weaker read on unemployment (6.4% for January, vs forecasts at 6.2% and a previous read at 6.1%) saw the AUD under renewed pressure. The fall in AUD/JPY pushed the pair through support, and turned the MACD negative.
More cautious traders may look for a fall through the previous candle low before selling. With a initial target just below 91, and a longer range target near the 89.50 lows, the MACD signal on the breach of the short term trend is enough for me: