 Good morning and welcome to the chart of the week video with me David Madden Today's date is Wednesday the 10th of June 2020 and the time has just gone 9 30 British summer time And this week's chart of the week is the Australian dollar versus the Japanese yen The Aussie yen and the reason why I want to talk about this currency pair Was because the Australian dollar is considered to be a typical example of a risk on currency Which basically means whenever traders are bullish about the the state of the global economy or their optimistic I think their prices of assets such as stocks and metals are going to rise The Aussie the Australian dollar tends to push higher on the flip side that divide the Japanese yen tends to be a risk-off currency So whenever traders become fearful about the state of the global economy or dessert or the selling pressure in stocks and or metals You often see The Japanese yen before well because it's it's considered to be or deemed to be a lower risk currency It's kind of a safe haven currency So I think this is an interesting currency pair given that one one side of it is kind of risk on the other side of it is risk off If we take a look at the price action for the last few months since mid-march So nearly for nearly three months now We've seen a solid upper trend in the Australian dollar versus the Japanese yen and the fact only in the last couple of days Did we see the currency pair hit its highest level in over a year? So it's quite clear that the Trend has been to the upside things are looking quite bullish although we did see a Bit of a pullback in the last couple of days the Australian dollar lost ground versus Japanese yen But I lost the lost ground across the board in the last couple of days due to rising Political tensions between Australia and China China is obviously a large a major Export destination for Australian goods. So any kind of political rumblings between those two countries could have negative economic impacts And a negative economic impact on the Australian economy So so what I wanted to discuss in this in this in this video is You know, what are the potential interesting interesting price points that are on potentially on the horizon in the near term You know, are we going to see a continuation of the wider upper trend in the Aussie end or are we going to look for our reversal? Or the most recent declines that you've seen is that just a pause in the wider upper trend or is the beginning of something Could it be the beginning of something larger? So if you take a look at the price action in the last couple of days We've had a fairly decent fairly decent move to the downside yesterday Take a look at the MACD Histograms MacD indicator. We can see that the the negative move in the on the currency pair has been confirmed by the decline in positive momentum So if you do look to press on lower from here and should we take out yesterday's low in at 74 It's about 47 with Kubanaki heading back towards this red line here the Trinity moving average and that comes into play at 72 spot 24 And if you do have a decent break below that we could head back down towards This area here whereby where the 100 a moving average and the 50 moving average both converge And as you can see both metrics the 100 a moving average and the 50 moving average have both acted as decent support levels in the past So if we if metrics have been act of in a pretty decent level of support in the past It makes them more likely that they'd be decent levels of support in the future although there are no guarantees So these are potential price areas to keep an eye on for to the downside should we see a decent move lower But keep in mind Mark has been in a solid upward trend for nearly three months and we haven't had a very large pullback We've had a few small but we haven't had a large one But mind you there's no guarantee that we are going to have a large pullback It's quite possible that this pullback that we saw yesterday this move lower Could be just a small pullback before we look to press on higher again And if that is the case should be pressed on higher from here We can if we take out the highs of the last couple of days, we keep looking heading up towards 78 And then if you go beyond that we could be looking heading up towards 80 If you are going to be trading this currency pair or in fact any any any any instruments on the financial markets in the next day So please be mindful that later on today at 1900 British summertime the Fed reserve will have their interest rate decision And the press conference will follow 30 minutes later. Thank you for listening. Say say stay safe Have a good trading week and good luck