23 Jul 2013
AUD/JPY rallying meekly off recent lows, but is this bounce ultimately doomed?
FXstreet.com (Barcelona) - What was for months a race to see who could weaken their currency faster is now a battle of short-term relative strength between the Aussie Dollar and Japanese Yen. The result is a neutral short-term direction for AUD/JPY.
AUD/JPY’s reaction to the weekend Abe-coalition victory disappointing for Aussie bulls
With Prime Minister Shinzo Abe’s policies receiving a vote of approval on Sunday, one would have thought we would see a sharp rally in AUD/JPY. That did not happen due to the Yen showing short-term strength and not the expected weakness in reaction to the news. However, the Aussie Dollar is also buoyant as a result of less-dovish comments out of Australia’s Reserve Bank last week. So, both currencies receiving a boost from recent news has the AUD/JPY basically treading water below resistance at 92.38 as of 3:14am GMT Tuesday.
AUD/JPY key technical levels
Technicians say that despite the sluggish recent action in AUD/JPY that the cross appears set to continue to work its way at least up to 93.76. Once up there, though, those same technicians are calling for a resumption in the downward trend in AUD/JPY. Short-term support for AUD/JPY comes in at Fibonacci support of 91.893. That support is followed by the 7/19 intraday pivot low of 91.59 and the 7/12 short-term low at 89.69. First resistance for AUD/JPY comes in at Friday’s high of 92.551 and the 7/9 intra-day high of 93.066.
AUD/JPY’s reaction to the weekend Abe-coalition victory disappointing for Aussie bulls
With Prime Minister Shinzo Abe’s policies receiving a vote of approval on Sunday, one would have thought we would see a sharp rally in AUD/JPY. That did not happen due to the Yen showing short-term strength and not the expected weakness in reaction to the news. However, the Aussie Dollar is also buoyant as a result of less-dovish comments out of Australia’s Reserve Bank last week. So, both currencies receiving a boost from recent news has the AUD/JPY basically treading water below resistance at 92.38 as of 3:14am GMT Tuesday.
AUD/JPY key technical levels
Technicians say that despite the sluggish recent action in AUD/JPY that the cross appears set to continue to work its way at least up to 93.76. Once up there, though, those same technicians are calling for a resumption in the downward trend in AUD/JPY. Short-term support for AUD/JPY comes in at Fibonacci support of 91.893. That support is followed by the 7/19 intraday pivot low of 91.59 and the 7/12 short-term low at 89.69. First resistance for AUD/JPY comes in at Friday’s high of 92.551 and the 7/9 intra-day high of 93.066.