AUDJPY - 5 January 2023
Link to guidance notes for Hurst cycles terminology: FLD, VTL, Translation, Diamonds, Circles/Whiskers etc. Note: peak and trough zones colour coded by cycle magnitude, from 20 day to 18 month.
The Australian Dollar - Japanese Yen pair exhibits very clear long term-cycles, both when considering cycles synchronized at their troughs and at their peaks which makes it an unusual and interesting pair to analyze - most instruments are clearly trough or peak synchronized. The high magnitude peak that formed at the end of September 2022, in common with many other forex pairs - see the stack of triangles at the top of the above chart - is possibly of 18 year magnitude, although assuming such high magnitude after only a few months is premature. We will certainly be watching the nature of the bounce out of the upcoming trough in this pair for confirmation of that peak magnitude.
