AUD/JPY Forex Signal 22/10: Buy At 111.30, Target 112

(MENAFN- Daily Forex) Potential signal:

I am a buyer at 111.30 with a stop-loss at 110.90 and a target of 112. The Australian dollar has seen a bit of buying early on Wednesday, as we continue to see the interest rate differential play out here. At this point, the buyers look as if they are trying to flex their muscles.

AUD/JPY

The Australian dollar continues to rally against the Japanese yen during the trading session on Wednesday as we are now testing the 50-day EMA. This opens up the possibility of the market taking off toward the ¥112 level, possibly even higher than that.

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Short-term pullbacks, I think, open up the possibility of buying opportunities, with the interest rate differential favoring Australia and, of course, the 200-day EMA offering a bit of support as well. In fact, I suspect all the way down to ¥109 is going to be supported, so I like the idea of buying short-term pullbacks or a breakout above the 50-day EMA traders get paid to wait

You get paid to hang on to this pair. That is something that you need to keep in the back of your mind. While the RBA has recently received some pretty poor employment numbers, the reality is that the Japanese probably cannot do much about interest rates rising anytime soon as well.

With this, I think we're hanging around the 200-day EMA and building that base to turn things around and perhaps, over the longer term, even send the Australian dollar all the way to the ¥115 level. We'll just have to wait and see.

EURUSD Chart by TradingView

I do like buying these dips, as I said. I like the fact that you get paid at the end of the session to somewhat pad your position as well. Furthermore, when you look at where we're at, the market has been supported right around where we had formed the double bottom going back about a year, so this is just more of the same

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