Going into the US Thanksgiving holiday, I am keeping an eye on a non-USD pair: AUD/JPY.
JPY has showed relative strength, even on days where equities have been going up. Conversely, the AUD has been showing weakness, even on the back of rising commodity prices in recent weeks. Therefore, I believe that shorting the AUD/JPY is the right trade based on a fundamental analysis (my directional bias).
From a technical perspective, the pair is at support, which is the upper part of the trading range f…