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18 Dec 2013
AUD/JPY rallying Tuesday on news / data and a short-term oversold condition
FXstreet.com (Barcelona) - AUD/JPY has reacted bullishly to the Aussie news and Japanese data. The cross had been correcting lower for the last four sessions but reached oversold levels and found a reason to correct higher Wednesday.
AUD/JPY will be monitoring the US Fed decision on tapering as driver of risk appetite
The AUD/JPY will be one of the interesting crosses to watch after the Fed news comes out late in the US session. For years, the AUD/JPY has been one of the key gauges of global risk appetite in the forex arena. Recently, the conspicuous weakness in the Aussie Dollar may have forced a percentage of the risk traders over to the EUR/JPY. However, anytime there’s a weighty economic headline like the Fed’s tapering decision, it behooves one to closely monitor the action in all of the risk proxies to see if certain bullish or bearish patterns are developing.
The action thus far Wednesday has been bullish as RBA Governor Stevens’ speech was apparently enough to push the needle from bearish to bullish – at least for the short-term.
Technical outlook for AUD/JPY
Technicians say the AUD/JPY has support at 91.57 – the low from the last few hours - and approximately 91.21 – the low from Tuesday. Resistance comes in at 91.84 – today’s high – and approximately 92.
AUD/JPY will be monitoring the US Fed decision on tapering as driver of risk appetite
The AUD/JPY will be one of the interesting crosses to watch after the Fed news comes out late in the US session. For years, the AUD/JPY has been one of the key gauges of global risk appetite in the forex arena. Recently, the conspicuous weakness in the Aussie Dollar may have forced a percentage of the risk traders over to the EUR/JPY. However, anytime there’s a weighty economic headline like the Fed’s tapering decision, it behooves one to closely monitor the action in all of the risk proxies to see if certain bullish or bearish patterns are developing.
The action thus far Wednesday has been bullish as RBA Governor Stevens’ speech was apparently enough to push the needle from bearish to bullish – at least for the short-term.
Technical outlook for AUD/JPY
Technicians say the AUD/JPY has support at 91.57 – the low from the last few hours - and approximately 91.21 – the low from Tuesday. Resistance comes in at 91.84 – today’s high – and approximately 92.