9 Jul 2013
AUD/JPY setting stage for a 92.50 breakout?
FXstreet.com (Barcelona) - The AUD/JPY price series are exchanging hands just above the 92.00 mark, with buyers continuing to press against key resistance to the upside at 92.40.
NAB business conditions fail to bring down price
Despite the bad economic augurs in Australia, where the latest survey conducted by NAB showed business conditions and capacity utilisation at a four year low, broad-based Yen weakness is still playing a greater role to keep the AUD/JPY rate afloat. As a reminder for readers, following the weak release, the NAB updated its forecast on the RBA rates outlook, now expecting the Central Bank to reduce rates again in August.
AUD/JPY technicals constructive
From an intraday perspective - see H1/H4 chart - , the AUD/JPY has had a consistent run to the upside, squeeze shorts in the process while making higher lows. In the latest flash retracement following the downbeat NAB survey data and China CPI, the pair found dynamic support at 91.73, area where the 20-day MA on the H4 chart converges. Traders should be watchful for a potential breakout which may expand upside scope towards 93.65 - June 10 swing high -. Note for the break to qualify, a clean break and hold on an hourly candle above 92.45/50 is necessary. On the flip side, topside failure sees 91.70 back into play.
NAB business conditions fail to bring down price
Despite the bad economic augurs in Australia, where the latest survey conducted by NAB showed business conditions and capacity utilisation at a four year low, broad-based Yen weakness is still playing a greater role to keep the AUD/JPY rate afloat. As a reminder for readers, following the weak release, the NAB updated its forecast on the RBA rates outlook, now expecting the Central Bank to reduce rates again in August.
AUD/JPY technicals constructive
From an intraday perspective - see H1/H4 chart - , the AUD/JPY has had a consistent run to the upside, squeeze shorts in the process while making higher lows. In the latest flash retracement following the downbeat NAB survey data and China CPI, the pair found dynamic support at 91.73, area where the 20-day MA on the H4 chart converges. Traders should be watchful for a potential breakout which may expand upside scope towards 93.65 - June 10 swing high -. Note for the break to qualify, a clean break and hold on an hourly candle above 92.45/50 is necessary. On the flip side, topside failure sees 91.70 back into play.