AUD/JPY sets the tone for best week in almost 2 years

FXstreet.com (Barcelona) - The AUD/JPY foreign exchange cross rate is last trading near session and 1-month highs at 91.44 on its third consecutive rising day building a 3 white soldiers candle reversal pattern, adding for more than 4% in the week so far, ahead of Australia trade balance data at 01:30 GMT and BoJ later on.

AUD/JPY looking for the 93 level

“The double-bottom formation just above a 61.8% Fibo allied with short-covering ahead of the election has had the desired affect (for us bulls that is) and there is now a clear technical target at 93.05,” said FXWW founder Sean Lee, adding: “I booked some partial profits yesterday at 89.70 on average and although I wish I still had the whole position now, it made sense at the time. I will be patient now and wait for 93.00 before booking more profits. If USD/JPY breaks through 100.00, then we will see 93.00 in AUD/JPY very quickly imho.”

AUD/JPY key technical levels

Immediate resistance to the upside for AUD/JPY shows at mentioned 1-month highs 91.57, followed by Jan 16 lows at 92.43, and Jan 23 lows/July 24 highs at 92.74. To the downside, closest support lies at London session highs 91.31, followed by NY session lows at 90.95, and Tuesday's highs at 90.54.

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USD/JPY setting stage for upside break, 99.80/100.00 critical

USD/JPY continues subject to upward pressure, with dip buying interest remaining firm all week long, as traders gear up for what could be an important breakout through 99.80/100.00.
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