Market continues to be listless for the 4th day. Although equities has moved quite significantly, Yen seemed to be more flat.
Overall, AUDJPY is expected to be in a range of 76.5 to 72.5 with a bearish tilt. The bearish taper is what make this look attractive to short and it coincides closely to DJI.
Fundamentally, tug of war continues between Covid and the FED. The sudden rise in Covid cases this week failed to put a dent on the market. On the flip side, President Trump’s announcement of a new $1 Trillion stimulus package failed to ignite the bulls as well.
Tomorrow will be the last day of the trading week and we shall see where the market will really take this – up or down. Monday should be something to look forward to as we have gone through two gap down Mondays, which was the trend when the crisis started last February.
Entry 73ish, TP 70.00
I would pay attention to price breaking previous day’s high and should signify a short-term rally back up. Either stop out, stop and reverse, or hedge against it. Another option is to just accumulate shorts from 73 to 77.