Good afternoon team,
Australia has finally announced plans to begin opening the borders, of course, this will apply initially for permanent residents. However, with the opening around the corner foreign purchases for the AUD may begin to increase which will result in increased demand for the AUD. Based on an increased demand we see the AUD gaining strength. Additionally, the stock market looks set for a technical bounce which could see the JPY weaken as there will be a decreased demand for the safe-haven currency.
AUDJPY – 1 Hour Chart
There is a clear 5 wave structure rise which indicates a bullish trend, followed by an ABC corrective pullback. Based on Elliott wave theory there should be another 5 wave rally minimum.
Trade Setup: BUY market execution, current price 80.66, stop loss 79.90 (which is the invalidation level) and take profit 82.00
Stop loss: 76 pips
Take profit: 134 pips