AUDJPY - 5 January 2023

Analysis & Learning Jan 5, 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 is approaching an 18 month cycle trough zone, with clear cycle levels to watch in case of an early bounce.

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.

David Hickson

David is a writer, filmmaker and entrepreneur who has been trading financial markets for 30 years. He is the creator of Sentient Trader, the premier Hurst analysis software for professional traders.