23 Oct 2013
Overbought AUD/JPY spikes and retreats Tuesday – short-term correction underway
FXstreet.com (Barcelona) - AUD/JPY continued its upside momentum until around 14:10 GMT Tuesday – at which point some corrective selling entered the market. This could be a constructive short-term correction.
AUD/JPY has been a great risk “tell”; it may be telling us a short-term correction is at hand
It’s still a bullish overall environment, but a few hours or even days of pullback or consolidation should be a welcome occurrence for AUD/JPY and risk bulls. As long as the technicals (see below) hold up, the current pullback should just relieve some of the overbought condition on the chart.
AUD/JPY traders has reacted fairly bearishly to Aussie Leading Indicators which came in lighter than expected. Aussie inflation data just came out a bit hotter than expected and is pushing the cross higher for the short-term.
Technical outlook for AUD/JPY
Technicians say AUD/JPY is working off a short-term overbought condition after testing resistance at 95.67 (which was tested Tuesday). The cross has short-term support at 94.81. Above the initial resistance of 95.67, the next projected resistance comes in at 97.95.
AUD/JPY has been a great risk “tell”; it may be telling us a short-term correction is at hand
It’s still a bullish overall environment, but a few hours or even days of pullback or consolidation should be a welcome occurrence for AUD/JPY and risk bulls. As long as the technicals (see below) hold up, the current pullback should just relieve some of the overbought condition on the chart.
AUD/JPY traders has reacted fairly bearishly to Aussie Leading Indicators which came in lighter than expected. Aussie inflation data just came out a bit hotter than expected and is pushing the cross higher for the short-term.
Technical outlook for AUD/JPY
Technicians say AUD/JPY is working off a short-term overbought condition after testing resistance at 95.67 (which was tested Tuesday). The cross has short-term support at 94.81. Above the initial resistance of 95.67, the next projected resistance comes in at 97.95.