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8 Jan 2015
AUD/JPY mercy of greenback; awaits domestic data
FXStreet (Guatemala) - AUD/JPY has taken on the 96.20 resistance and reached a high of 96.48 so far while on the bid.
The move came as a continuation of the upside when demand rescued it from below 95.80. For the pair to get back into more neutral territory, 0.9780 and beyond the bearish gap would be key, if having moved on from 97.20 that is still up ahead.
AUD/JPY has had little in the way of domestic stimuli to monitor and has traded through the greenback for the most part this week. The Yen has dropped back with the US dollar on the bid and finishing up thus far 20 pips shy of the key 119.80 resistance. It may take 119.80 and closes on the upside to confirm strength and commitment for the bulls in USD/JPY, while with the Aussie, it printed fresh lows again overnight, albeit only within a tight vicinity of recent lows around 0.8030 - lacks follow through.
If there continues to be a lack of demand in the Aussie, this may spark a series of profit taking that could see the cross back on the bid here, with a target of 98.00 in the first respect of the previous upside trend. Fundamentally though, it may take some positive job and housing data from the Australian economy to spark such price action. So, while otherwise, we will look to the greenback again and the end of week’s Nonfarm Payrolls showdown. First up ahead though, Australian Building Permits today and Retails Sales in tomorrow for Australia.
The move came as a continuation of the upside when demand rescued it from below 95.80. For the pair to get back into more neutral territory, 0.9780 and beyond the bearish gap would be key, if having moved on from 97.20 that is still up ahead.
AUD/JPY has had little in the way of domestic stimuli to monitor and has traded through the greenback for the most part this week. The Yen has dropped back with the US dollar on the bid and finishing up thus far 20 pips shy of the key 119.80 resistance. It may take 119.80 and closes on the upside to confirm strength and commitment for the bulls in USD/JPY, while with the Aussie, it printed fresh lows again overnight, albeit only within a tight vicinity of recent lows around 0.8030 - lacks follow through.
If there continues to be a lack of demand in the Aussie, this may spark a series of profit taking that could see the cross back on the bid here, with a target of 98.00 in the first respect of the previous upside trend. Fundamentally though, it may take some positive job and housing data from the Australian economy to spark such price action. So, while otherwise, we will look to the greenback again and the end of week’s Nonfarm Payrolls showdown. First up ahead though, Australian Building Permits today and Retails Sales in tomorrow for Australia.