9 Apr 2014
AUD/JPY pares losses, 95.30/50 key resistance
FXStreet (Bali) - AUD/JPY recorded its second consecutive days of losses, posting a new low of 95.02 before bouncing to 95.28, present level.
The unwinding of JPY shorts after the press conference by BoJ Kuroda on Tuesday, suggesting no further easing in the months ahead, kick-started the bearish resumption, which was limited in nature, compared to other JPY crosses, thanks to the stellar performance of the AUD, second best after the Yen on Tuesday.
Technically, the AUD/JPY continues to trade on a very constructive bullish undertone from a daily perspective, however, after an overstretched run up to 96.50, it looks like we have entered a corrective phase in which additional declines back towards 94.50 (38.2% fib retrac 91 - 96.50 run converges with horizontal support) ma be seen. On the upside, AUD should ideally regain 95.50 in order to restore the bullish bias short term.
The unwinding of JPY shorts after the press conference by BoJ Kuroda on Tuesday, suggesting no further easing in the months ahead, kick-started the bearish resumption, which was limited in nature, compared to other JPY crosses, thanks to the stellar performance of the AUD, second best after the Yen on Tuesday.
Technically, the AUD/JPY continues to trade on a very constructive bullish undertone from a daily perspective, however, after an overstretched run up to 96.50, it looks like we have entered a corrective phase in which additional declines back towards 94.50 (38.2% fib retrac 91 - 96.50 run converges with horizontal support) ma be seen. On the upside, AUD should ideally regain 95.50 in order to restore the bullish bias short term.