AUD/JPY in focus
One way that had been considered for China to retaliate was by devaluing the Yuan. Eamonn reported overnight that China’s premier Li has stated overnight that China will not devalue their currency. Justin also drew our attention to the level of imports in China, further discouraging yuan devaluation, as well as the correlation between the yuan and the AUD. Make sure you check out that post to see the correlation.
The RBA minutes from Tuesday show a broad confidence out of the RBA and if the trade wars are shrugged off, as they seem to be at the moment, then more upside looks good for the AUD. The Bank of Japan stayed pat overnight, as expected, and the market sentiment is currently on a risk on mode.
So, looking at the AUDJPY 15 minute chart a good place of support to buy from is the convergence of the 200 MA and the pivot point marked on the chart below.