25 Mar 2014
AUD/JPY approaching key descending trendline
FXStreet (Bali) - AUD/JPY posted a sixth day of unperturbed gains on Monday, with the rate rising from 92.85 up to a new 2-week high of 93.54 before consolidating around 92.30.
AUD/JPY approaching descending trendline
The latest climb in the exchange rate comes mainly fueled by broad-based AUD strength, which coupled with improved risk taking, led the exchange rate to extend its winning streak one more day; the pair is fast approaching a descending trendline coming circa 93.85, visible connecting last April 2013 high through March 7 peak. In cross related flows, should a break above 0.9150 be confirmed in AUD/USD, a further boost in the AUD/JPY may be seen. As usual, the Nikkei 225 performance today will help set the directional bias for the pair.
AUD/JPY outlook
After the breakout of 92.85/90 resistance, longs were also able to penetrate into a new cluster of offers circa 93.40/50, although no follow through was observed. As mentioned, the next key hurdle to the upside is located at 93.85 (descending trendline) ahead of 94.00 round number and March 7 high of 94.40/50. On the downside, 92.85 is likely to see renewed buying interest followed by 92.00 (ascending trendline + round number).
AUD/JPY approaching descending trendline
The latest climb in the exchange rate comes mainly fueled by broad-based AUD strength, which coupled with improved risk taking, led the exchange rate to extend its winning streak one more day; the pair is fast approaching a descending trendline coming circa 93.85, visible connecting last April 2013 high through March 7 peak. In cross related flows, should a break above 0.9150 be confirmed in AUD/USD, a further boost in the AUD/JPY may be seen. As usual, the Nikkei 225 performance today will help set the directional bias for the pair.
AUD/JPY outlook
After the breakout of 92.85/90 resistance, longs were also able to penetrate into a new cluster of offers circa 93.40/50, although no follow through was observed. As mentioned, the next key hurdle to the upside is located at 93.85 (descending trendline) ahead of 94.00 round number and March 7 high of 94.40/50. On the downside, 92.85 is likely to see renewed buying interest followed by 92.00 (ascending trendline + round number).