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13 Nov 2014
AUD/JPY bulls still in control on Central Banks
FXStreet (Guatemala) - AUD/JPY is trading at 100.88, up 0.10% on the day, having posted a daily high at 101.23 and low at 100.27.
The AUD/JPY story continues. The pair is relentless and continues overall on the bid, albeit with a double top at 101.20 and taking it back below the 101 handle towards a potentially strong support line at 100.80 currently. We will continue to monitor themes with the central banks and the divergences between them.
Most recently, weighing on the Aussie, there has been some chatter around the possibility of the RBA intervening again coming from RBA assistant Gov Kent’s dovish remarks. He explained that mining investment would fall further in the coming year, all leading up to the threat that "RBA has not ruled out intervention" as a policy option.”
Regardless, the divergence between the Fed and BoJ remains compelling and the Yen has been set back as a result. There is little in the way of bullish prospects for the Japanese currency, in the current liquid and risk on markets that is. This should allow any continuation on domestic positive data from the Australian economy and improvements in the commodity sector as well as robust performance from China, to prop the cross at these weekly highs, supported on the long term support line and thus might encourage a move through the 102 handle and on towards April 2013 highs upon 105.00.
AUD/JPY noteworthy levels
Spot is presently trading at 100.88, and next resistance can be seen at 100.89 (Hourly 20 EMA), 101.08 (Daily Classic R1), 101.23, 101.37 (Daily Classic R2) and 101.45 (Weekly Classic R3). Support below can be found at 100.87, 100.80 (Daily Open), 100.78, 100.30 and 99.80.
The AUD/JPY story continues. The pair is relentless and continues overall on the bid, albeit with a double top at 101.20 and taking it back below the 101 handle towards a potentially strong support line at 100.80 currently. We will continue to monitor themes with the central banks and the divergences between them.
Most recently, weighing on the Aussie, there has been some chatter around the possibility of the RBA intervening again coming from RBA assistant Gov Kent’s dovish remarks. He explained that mining investment would fall further in the coming year, all leading up to the threat that "RBA has not ruled out intervention" as a policy option.”
Regardless, the divergence between the Fed and BoJ remains compelling and the Yen has been set back as a result. There is little in the way of bullish prospects for the Japanese currency, in the current liquid and risk on markets that is. This should allow any continuation on domestic positive data from the Australian economy and improvements in the commodity sector as well as robust performance from China, to prop the cross at these weekly highs, supported on the long term support line and thus might encourage a move through the 102 handle and on towards April 2013 highs upon 105.00.
AUD/JPY noteworthy levels
Spot is presently trading at 100.88, and next resistance can be seen at 100.89 (Hourly 20 EMA), 101.08 (Daily Classic R1), 101.23, 101.37 (Daily Classic R2) and 101.45 (Weekly Classic R3). Support below can be found at 100.87, 100.80 (Daily Open), 100.78, 100.30 and 99.80.