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21 Feb 2014
AUD/JPY not liking 92.40 resistance
FXStreet (Guatemala) - AUD/JPY has dropped from the 92.40 resistance level and has moved through 92.20 eyeing the handle on a broadly based sell off in the Aussie.
AUD/USD is testing key support of 0.8990/80 territory and USD/JPY is resilient at 102.50 post the BoJ minutes. The minutes included details on the Japan economy: "With regard to the outlook, Japan's economy is expected to continue a moderate recovery as a trend, while it will be affected by the front-loaded increase and subsequent decline in demand prior to and after the consumption tax hike. The year-on-year rate of increase in the CPI, excluding the direct effects of the consumption tax hike, is likely to be around 1¼ percent for some time." In respect of critical levels for AUD, Ivan Delgado, Head of Asian Editors at FXStreet is bullish on AUD/USD ahead of the weeks close so long as 0.8990 territory can hold. “A break below may result in sellers aiming to try lower levels, however, based on the impulsive move-up from Thursday, they should encounter solid buying on dips to regain higher territory, which should result in choppy action. On the other hand, a continuation towards 0.9040 looks more likely given the strong short term momentum, with a break above exposing 0.9070/80”. In an event that 0.8990/80 levels hold up, AUD/JPY could have a tough time much further through if 92.00 does break.
AUD/JPY outlook
Sean Callow, strategist at Westpac Banking Corporation ABN said, “AUD/JPY risks seem tilted to the upside over the next few weeks on a more constructive AUD backdrop and broadly supportive global risk appetite. But gains beyond 94-95 over the next month could be difficult given the weight of speculative positioning on USD/JPY and doubts over whether the Bank of Japan will deliver substantive policy change in April”.
AUD/USD is testing key support of 0.8990/80 territory and USD/JPY is resilient at 102.50 post the BoJ minutes. The minutes included details on the Japan economy: "With regard to the outlook, Japan's economy is expected to continue a moderate recovery as a trend, while it will be affected by the front-loaded increase and subsequent decline in demand prior to and after the consumption tax hike. The year-on-year rate of increase in the CPI, excluding the direct effects of the consumption tax hike, is likely to be around 1¼ percent for some time." In respect of critical levels for AUD, Ivan Delgado, Head of Asian Editors at FXStreet is bullish on AUD/USD ahead of the weeks close so long as 0.8990 territory can hold. “A break below may result in sellers aiming to try lower levels, however, based on the impulsive move-up from Thursday, they should encounter solid buying on dips to regain higher territory, which should result in choppy action. On the other hand, a continuation towards 0.9040 looks more likely given the strong short term momentum, with a break above exposing 0.9070/80”. In an event that 0.8990/80 levels hold up, AUD/JPY could have a tough time much further through if 92.00 does break.
AUD/JPY outlook
Sean Callow, strategist at Westpac Banking Corporation ABN said, “AUD/JPY risks seem tilted to the upside over the next few weeks on a more constructive AUD backdrop and broadly supportive global risk appetite. But gains beyond 94-95 over the next month could be difficult given the weight of speculative positioning on USD/JPY and doubts over whether the Bank of Japan will deliver substantive policy change in April”.