Forex Market: AUD/JPY trading outlook for November 23rd

Friday’s trade saw AUD/JPY within the range of 88.25-89.06. The pair closed at 89.00, surging 0.69% on a daily basis, while marking its fourth consecutive trading day of gains. The daily rate of increase has been the steepest one since November 12th, when the pair went up 0.75%. At the same time, the daily high has been the highest level since August 24th, when a high of 89.23 was registered. In weekly terms, AUD/JPY appreciated 1.75%, while marking its third straight weekly advance and also the sharpest one since the week ended on October 11th, when the pair soared 4.41%.

No relevant macroeconomic reports and other events, which may influence AUD/JPY trading, are scheduled on Monday (November 23rd).

Japanese Labor Thanksgiving Day

November 23rd is the Labor Thanksgiving Day holiday in Japan, which commemorates labor and production. Banks in the country are to remain closed.

Correlation with Major Pairs

Taking into account the week ended on November 22nd and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

AUD/JPY to AUD/USD (0.9673, or very strong)
AUD/JPY to NZD/USD (0.8151, or very strong)
AUD/JPY to USD/CHF (0.5600, or strong)
AUD/JPY to USD/CAD (0.1073, or weak)
AUD/JPY to GBP/USD (0.0838, or very weak)
AUD/JPY to EUR/USD (-0.0534, or very weak)
AUD/JPY to USD/JPY (-0.6020, or strong)

1. During the examined period AUD/JPY moved strongly in one and the same direction with USD/CHF, while moving strongly in the opposite direction compared to USD/JPY.

2. AUD/JPY moved almost equally in one and the same direction with AUD/USD and NZD/USD during the past week.

3. AUD/JPY moved almost independently in comparison with GBP/USD and EUR/USD during the period in question.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the Monday pivot levels for AUD/JPY are presented as follows:

Central Pivot Point – 88.77
R1 – 89.29
R2 – 89.58
R3 – 90.10

S1 – 88.48
S2 – 87.96
S3 – 87.67

By using the traditional method of calculation again, the weekly pivot levels for AUD/JPY are presented as follows:

Central Pivot Point – 88.27
R1 – 89.79
R2 – 90.57
R3 – 92.09

S1 – 87.49
S2 – 85.97
S3 – 85.19