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2 Dec 2014
AUD/JPY upside capped 101.40 ahead of 102 strong resistance
(Guatemala) - AUD/JPY is trading at 100.65, up 0.05% on the day, having posted a daily high at 101.19 and low at 100.27.
AUD/JPY is caught up between the greenback trending higher again and pulling down on both Yen and AUD. The cross rallied up on to 101.19 from 100.45 with the Yen taken up to 119.30 the high. Supply met the Yen and also heavy offers met the Aussie at 0.8540 and brings us back below 100.80. Fundamentals are driving the crosses in respect of commodity prices and risk aversion from one day to the next.
Volatility into year-end is the theme while technically the price remains in recent ranges until a break of 103.00 and 98.00. The downside has been opened and a bearish bias remains currently with fundamentals at play there. Japanese officials warning the Yen is too weak too fast, recent downgrading of Japan and risk aversion, RBA hardening their jawboning of the currency and commodities in bearish form.
Risk reward scenario may also favour more room to the downside in AUD/USD than the potential for further upside in USD/JPY through the psychological handle of 120.00, which ultimately hinders the bullish potential in AUD/JPY. From a longer-term perspective, the bullish trend is still very much in play and test and break with closes on 103 would bring the support up with it.
AUD/JPY is caught up between the greenback trending higher again and pulling down on both Yen and AUD. The cross rallied up on to 101.19 from 100.45 with the Yen taken up to 119.30 the high. Supply met the Yen and also heavy offers met the Aussie at 0.8540 and brings us back below 100.80. Fundamentals are driving the crosses in respect of commodity prices and risk aversion from one day to the next.
Volatility into year-end is the theme while technically the price remains in recent ranges until a break of 103.00 and 98.00. The downside has been opened and a bearish bias remains currently with fundamentals at play there. Japanese officials warning the Yen is too weak too fast, recent downgrading of Japan and risk aversion, RBA hardening their jawboning of the currency and commodities in bearish form.
Risk reward scenario may also favour more room to the downside in AUD/USD than the potential for further upside in USD/JPY through the psychological handle of 120.00, which ultimately hinders the bullish potential in AUD/JPY. From a longer-term perspective, the bullish trend is still very much in play and test and break with closes on 103 would bring the support up with it.