The Nikkei 225 finished higher in today’s trading by 108.1 points or 0.45% at 24,041.3. Meanwhile, the Hang Seng Index is trading slightly lower at 8,863.3 by 12.5 points or 0.04%. It would seem that the Nikkei 225 was in the green and the Hang Seng Index were able to recoup its losses on risk appetite. The Asian equities markets tracked the performance of US equities markets with the S&P 500 and Dow Jones rallying to record highs following the US-China trade deal.
It may have also helped that roster of data from China released today was generally positive. The fourth-quarter GDP report printed as expected at 6.0%. Meanwhile, fixed asset investment and industrial production topped forecasts at 5.4% and 6.9%, respectively. They were anticipated at 5.2% and 5.9%, Meanwhile, retail sales report was also higher at 8.0% than the 7.9% consensus. Only the unemployment rate came in negative. It trickled higher at 5.2% in December from 5.1% in November.
Read our Best Trading Ideas for 2020.
AUDJPY Outlook
On the weekly time frame, we can see that the currency pair’s downtrend is still intact. Connecting the lower highs of September 17, 2017, January 21, 2018, and December 2, 2018, AUDJPY is still trading below the falling trend line. However, we can also see that the currency pair has formed what looks like an inverse head and shoulders chart pattern. When you enrol to our forex trading course, you will learn that this is considered a bullish indicator. The lower lows succeeded by a higher low indicates the presence of buyers in the market. AUDJPY looks to have re-tested the neckline and could indicate what it may soon rally to test trend line resistance around 77.90. It also seems that this price coincides with the 100 SMA. If there are enough buyers in the market, a strong close above this price could even mean that AUDJPY may soon rally to its April 2019 highs at 80.76.
On the other hand, a bearish engulfing candlestick pattern could indicate that sellers are not yet done. We could even see AUDJPy fall to its July 2019 lows at 70.70.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Follow me on Twitter.
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.