30 Jul 2013
Flash: AUD/JPY could slip to 88.00 – Westpac
FXstreet.com (New York) - Global FX Strategist Sean Callow at Westpac analyzes the long-term outlook of the AUD/JPY.
Key quotes
“The AUD/JPY is rolling over once again despite July’s broad range trading on AUD/USD. We see AUD/JPY slipping to 88 initially then to 86.30 multi-week as sluggish US data calls into question Fed QE tapering as soon as September (hurting USD/JPY) and Australia’s domestic story keeps a lid on AUD crosses.”
“The AUD/JPY 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.”
Key quotes
“The AUD/JPY is rolling over once again despite July’s broad range trading on AUD/USD. We see AUD/JPY slipping to 88 initially then to 86.30 multi-week as sluggish US data calls into question Fed QE tapering as soon as September (hurting USD/JPY) and Australia’s domestic story keeps a lid on AUD crosses.”
“The AUD/JPY 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.”