27 Oct 2013
AUD/JPY testing offers at 93.60/70 after 40+ pips gap up
FXstreet.com (Barcelona) - AUD/JPY has spiked higher in early Asian trade, with the price moving away from 93.30 support are towards its most immediate resistance at 93.65/70, where offers have contained further rises.
According to Peter Fell, lead-Asian editor at the FX Beat, "an article in the Nikkei that Japan Govt to Raise 401(k) Plan Contribution Ceiling are the cited reasons for the USD/JPY spike this morning in early Asia."
Technically, the pair stalled its abrupt decline last week around 93.00 before recovering, an area where the 20-day EMA crosses. The impulsiveness of last week's sharp falls require caution, with buyers having to face some tough missions ahead if the cross is to regain its lost bullishness.
First off, a break and consolidation above 93.70 resistance is required, although would only be the start for a more ambitious yet much-needed attack towards 94.00 and 94.40, next key resistances. Only a break through the latter would allow for stronger gains, while re-adjusting the technical picture back with the primary bullish trend on the daily. On the downside, a loss of 93.00 support would be a negative development for the cross, which would expose next key support at 92.30, Oct 1 peak.
According to Peter Fell, lead-Asian editor at the FX Beat, "an article in the Nikkei that Japan Govt to Raise 401(k) Plan Contribution Ceiling are the cited reasons for the USD/JPY spike this morning in early Asia."
Technically, the pair stalled its abrupt decline last week around 93.00 before recovering, an area where the 20-day EMA crosses. The impulsiveness of last week's sharp falls require caution, with buyers having to face some tough missions ahead if the cross is to regain its lost bullishness.
First off, a break and consolidation above 93.70 resistance is required, although would only be the start for a more ambitious yet much-needed attack towards 94.00 and 94.40, next key resistances. Only a break through the latter would allow for stronger gains, while re-adjusting the technical picture back with the primary bullish trend on the daily. On the downside, a loss of 93.00 support would be a negative development for the cross, which would expose next key support at 92.30, Oct 1 peak.