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:

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.