Scary China news Wednesday sends AUD/JPY reeling; strong China PMI Thursday gives it a boost

FXstreet.com (Barcelona) - AUD/JPY bounced on the news that China’s Manufacturing PMI hit seven-month highs – partially offsetting the bearish reaction to the Chinese credit concerns from Wednesday.

AUD/JPY reacting bullishly to China PMI

AUD/JPY is reacting bullishly to a better-than-expected Chinese Manufacturing PMI but so far has failed to even retrace 38.2% of the Wednesday decline.

For the rest of the session Thursday, AUD/JPY traders will be monitoring the overall mood of investors as well as a speech being given by RBA Governor Lowe for directional clues.

Technical outlook for AUD/JPY

Technicians say the first resistance for AUD/JPY will come in at 94.26 – the 38.2% retracement of the Wednesday decline. Above that comes additional Fibonacci resistance at 94.51. Support comes in at Wednesday’s lows at 93.42 and is followed up by horizontal line support at 92.54.

Flash: Key Japanese players to send the Yen lower - Nomura

According to Yujiro Goto, FX Strategist at Nomura, expectations remains high that the three main types of investor in Japan – toshins (retail investors), pension funds and lifers - will be key players in sending JPY weaker.
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GBP/JPY on EMA20 at 157.60

GBP/JPY bounced off from 157.18 session lows to then reach 157.92 session highs, retracing around 157.60 front (23.6% Fibonacci level).
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