25 Aug 2015
AUD/JPY marching higher as USD/JPY rallies big time
FXStreet (Guatemala) - AUD/JPY is currently on the bid and made a high of 86.50 so far at the time of writing.
AUD/JPY has rallied as risk sentiment returns and the Yen is taken out on the 119 handle up to highs of 119.82 at time of writing on a full cent rally as the Tokyo day gets fully under way. Fed's Lockhart==<==/a> gave the market bulls something to stick their horns into as he announced that the Fed is on course to hike interest rates at some point this year, albeit saying that they will not be hiking 25bp's at each meeting. Despite, EUR/USD rallied 20 pips on his announcements.
Lockhart still maybe supportive to USD/JPY==<==/strong>
Nevertheless, this may be supportive to USD/JPY in an otherwise risk-off environment where global uncertainties are gripping markets and are supportive of the Yen while the Aussie remains subject to downside risk as China poses a big risk to the Australian economy, and the RBA may be required to intervene with additional easing of monetary policy that will weigh ion the Aussie even further, unless the RBA feels that the level of the Aussie can continue to do its work for them.
AUD/JPY levels
Technically, AUD/JPY is embarking on overbought territory with RSI (14) up to 69, but is shy of R1 at 86.96. The SMA 100 comes in at 86.27 offering near term support ahead of key support at 85.50/60 with the classic pivot sat between at 85.34.
AUD/JPY has rallied as risk sentiment returns and the Yen is taken out on the 119 handle up to highs of 119.82 at time of writing on a full cent rally as the Tokyo day gets fully under way. Fed's Lockhart==<==/a> gave the market bulls something to stick their horns into as he announced that the Fed is on course to hike interest rates at some point this year, albeit saying that they will not be hiking 25bp's at each meeting. Despite, EUR/USD rallied 20 pips on his announcements.
Lockhart still maybe supportive to USD/JPY==<==/strong>
Nevertheless, this may be supportive to USD/JPY in an otherwise risk-off environment where global uncertainties are gripping markets and are supportive of the Yen while the Aussie remains subject to downside risk as China poses a big risk to the Australian economy, and the RBA may be required to intervene with additional easing of monetary policy that will weigh ion the Aussie even further, unless the RBA feels that the level of the Aussie can continue to do its work for them.
AUD/JPY levels
Technically, AUD/JPY is embarking on overbought territory with RSI (14) up to 69, but is shy of R1 at 86.96. The SMA 100 comes in at 86.27 offering near term support ahead of key support at 85.50/60 with the classic pivot sat between at 85.34.