30 Jul 2013
Flash: AUD/JPY short, target 86.30 multiweek - Westpac
FXstreet.com (Barcelona) - AUD/JPY exchange rate is coming into close contact with 89.00 support again, as AUD/USD remains pressured inside its 5-week long range and the USD/JPY starts to struggle.
Amid this scenario, according to Sean Callow, FX Strategist at Westpac, "We see AUD/JPY slipping to 88 initially then to 86.30 multiweek as sluggish US data calls into question Fed QE 'tapering' as soon as Sep (hurting USD/JPY) and Australia's domestic story keeps a lid on AUD crosses."
Meanwhile, Westpac FX Strategist David Coloretti, provides additional technical analysis, noting: ""AUDJPY has penetrated a 1 year trend line support at 90.30/50 this week. This MT trend break highlights a significant risk of immediate downside. 86.30 is a logical downside target, being the 61.8% Fibonacci retracement of the broken uptrend. This is a powerful target given the coincidence of levels with targets calculated using 2 independent methods."
Amid this scenario, according to Sean Callow, FX Strategist at Westpac, "We see AUD/JPY slipping to 88 initially then to 86.30 multiweek as sluggish US data calls into question Fed QE 'tapering' as soon as Sep (hurting USD/JPY) and Australia's domestic story keeps a lid on AUD crosses."
Meanwhile, Westpac FX Strategist David Coloretti, provides additional technical analysis, noting: ""AUDJPY has penetrated a 1 year trend line support at 90.30/50 this week. This MT trend break highlights a significant risk of immediate downside. 86.30 is a logical downside target, being the 61.8% Fibonacci retracement of the broken uptrend. This is a powerful target given the coincidence of levels with targets calculated using 2 independent methods."