AUD/JPY falls apart on Nikkei decline, RBA comments

FXstreet.com (Athens) – The AUD/JPY collapsed from 93.85 area to near 93.11 level mainly due to the RBA which cited that the Aussie is uncomfortably high, alongside with the modest Nikkei decline.

AUD/JPY grinds sharply lower on RBA comments, falling Nikkei

The AUD/JPY is now hovering around 93.22 area, having already pared a small portion of its earlier sharp losses on RBA comments about the “uncomfortable high” AUD. What’s more, we should point out that while Nikkei printed modest losses, the JPY crosses were under high pressure - slipping alongside with Nikkei - as the Japanese Index gets close to its 9-month rising uptrend line.

Technical aspects on the AUD/JPY

On the upper side, the cross might find a first initial resistance as of 93.97 level (high as of October 28) and then at the 200-daily SMA (94.67) in order to move higher. It is noteworthy to point out that at the time of writing the pair is sitting on the crucial 20-daily EMA at 93.27 area. Downwards, the cross should overcome the handle of the most crucial support area as of 92.60 (where is the Fibonacci retracement of 61.8% of the upwards movement of 90.69-95.67).

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