4 Jul 2013
AUD/JPY trades heavy, cushion found at 90.00
FXstreet.com (Barcelona) - The AUD/JPY suffered a major upside setback off 92.45 high to end the session with the price series depressed around 90.75, after losing 130 pips or 1.4% on the day.
AUD/JPY technical analysis favours sellers
The bearish reversal following the topside failure through the 20-day EMA, which had been reliably acting as dynamic resistance during July 1,2, has brought cheaper quotes back into focus. A break below the 90.00 handle is now necessary to expand losses towards 89.50 - sequence of lows from June 24,25 - ahead of threatening trend lows at 89.00. On the flip side, a close and hold above 92.45 is needed to negate the downgraded technical picture on the AUD/JPY.
RBA Stevens speech harms the AUD/JPY
Reserve Bank of Australia Chief Glenn Stevens was the main international market actor to blame for the additional depreciation on the AUD/JPY, after providing further 'transparent' clues about the monetary policy actions to be taken going forward. Stevens sent the Australian Dollar sharply lower after saying "If the economy ‘needs’ a lower exchange rate, it will probably get it." Right after the incendiary remark, including other dovish observations, Australian swap rates reversed back up to now price an RBA August rate cut at almost 60% from the 45% prior to the speech.
AUD/JPY technical analysis favours sellers
The bearish reversal following the topside failure through the 20-day EMA, which had been reliably acting as dynamic resistance during July 1,2, has brought cheaper quotes back into focus. A break below the 90.00 handle is now necessary to expand losses towards 89.50 - sequence of lows from June 24,25 - ahead of threatening trend lows at 89.00. On the flip side, a close and hold above 92.45 is needed to negate the downgraded technical picture on the AUD/JPY.
RBA Stevens speech harms the AUD/JPY
Reserve Bank of Australia Chief Glenn Stevens was the main international market actor to blame for the additional depreciation on the AUD/JPY, after providing further 'transparent' clues about the monetary policy actions to be taken going forward. Stevens sent the Australian Dollar sharply lower after saying "If the economy ‘needs’ a lower exchange rate, it will probably get it." Right after the incendiary remark, including other dovish observations, Australian swap rates reversed back up to now price an RBA August rate cut at almost 60% from the 45% prior to the speech.