4 Sep 2013
AUD/JPY succumbing to bears; will 90.00 zone be sustained?
FXstreet.com (Chicago) - AUD/JPY reached 90.29 before starting downward movement towards 90.00 zone at Tokyo’s opening and ahead of Australian GDP data.
Japanese earthquake, fast-forward tax hike, Australian GDP
Earlier in Australia, the AiG performance of services index dropped to 39.0 vs. past 39.4. In Japan, an earthquake with magnitude of 6.9 was reported coinciding with a recently announced a governmental decision to set the clock forward for the tax sales hike initially planned for April 2014 and provide a definitive answer on October 2nd instead. Shortly after the rumors spread, the BoJ said monetary easing would be considered if Prime Minister Abe raised taxes from 5% to 8%.
AUD/JPY Technical Levels
Price action reveals a potential exhaustion of yesterday’s bullish rally that sent the pair above 90.45 zone. At 90.09 (double tops on August 14th and 19th), the pair oscillates between supports at 89.95 (August 14th highs), 89.62 (August 13th highs) ahead of 89.13 (August 26th highs) and resistances at 90.47 (September 2nd highs), 91.00 (July 9th lows) followed by 91.34 (July 25th lows). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis and is offered above the EMA20.
Japanese earthquake, fast-forward tax hike, Australian GDP
Earlier in Australia, the AiG performance of services index dropped to 39.0 vs. past 39.4. In Japan, an earthquake with magnitude of 6.9 was reported coinciding with a recently announced a governmental decision to set the clock forward for the tax sales hike initially planned for April 2014 and provide a definitive answer on October 2nd instead. Shortly after the rumors spread, the BoJ said monetary easing would be considered if Prime Minister Abe raised taxes from 5% to 8%.
AUD/JPY Technical Levels
Price action reveals a potential exhaustion of yesterday’s bullish rally that sent the pair above 90.45 zone. At 90.09 (double tops on August 14th and 19th), the pair oscillates between supports at 89.95 (August 14th highs), 89.62 (August 13th highs) ahead of 89.13 (August 26th highs) and resistances at 90.47 (September 2nd highs), 91.00 (July 9th lows) followed by 91.34 (July 25th lows). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis and is offered above the EMA20.