AUD/JPY: downside playing out ahead of key Aussie jobs

AUD/JPY has been forced to the downside on a better bid yen while the US dollar is being sold off due to the FOMC minutes overnight that came out slightly dovish.

AU/JPY has reached a low of 77.36 so far while we now await te next catlyst on the Aussie jobs report. Analysts at ANZ saod that all eyes will be on Australian employment data this morning where they expect the labour market to soften. "A weak print should see some of the recent strength in the currency unwind and retest support around USD0.76. Australian July labour market figures are due at 11:30am AEST. ANZ expects employment to be flat (mkt: +10k ) and the unemployment rate to tick higher to 5.9% (mkt: 5.8%)."

How volatile has AUD/JPY been?

Hourly 2-Standard Deviation Volatility Bandwidth is currently 128 pips, and has been shrinking, while the ATR (14) is currently 22 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 357 pips and shrinking. The average movement for the current hour has been for 22 pips per hour, over the last four weeks. Meanwhile, 22:00-23:00 GMT represents peak for volatility, with an average movement of 43 pips over the same period.

What price levels and patterns have to be considered?

With spot trading at 76.42, we can see next resistance ahead at 76.49 (Weekly Classic S2), 76.58 (Daily Classic S2), 76.76 (Monthly Low), 76.77 (Weekly Low) and 76.77 (Daily Open). Support below can be found at 76.37 (Daily Low), 76.30 (Yesterday's Low), 76.13 (Daily Classic S3), 75.64 (Weekly Classic S3) and 74.76 (Annual Low).