Forex Chart Of The Day: AUDJPY High Volatility Drives Price Lower

The AUDJPY price has broken through the strong bullish trend as volatility increased in the market. Could this offer short trading opportunities?

Watch the video to learn more…

AUDJPY Analysis

The AUDJPY price has dropped due to the rising volatility in the markets as we head into a high impact news week. The VIX (volatility index) was up over 20% today adding pressure to the risk currencies like the Australian Dollar. Haven currencies like the USD and JPY benefit in these conditions with the JPY in particular enjoying some new found strength. The Japanese Yen had been depreciating rapidly as the BoJ continued to hold interest rates. 

The 4hr chart with weekly profiles show us that the price has broken through last week’s value area low and weekly low. This can often lead to an impulsive move in line with the breakout direction. Now the price has broken these key areas and upward trend we could assume the market is heading down towards the key 91.97 untested point of control. This could offer short term support however, if the price was to break this level we could see another impulsive move towards the 90.00 area. 

Traders could look out for the recent value area low for a short trading opportunity, if the price was to retest this area and bearish price action forms we could assume the trend will continue.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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