25 Apr 2014
AUD/JPY confirms range breakout, vulnerable to further downside
FXStreet (Bali) - AUD/JPY completed a second day of sharp falls on Thursday, losing over half a cent by confirming a break of its old day range.
The breakout comes as the smart money appears to be more keen on bidding the Japanese Yen, which combined with mounting tension in the Ukrainian crisis and the lower inflation pressures in Australia, has caused the rate to take a severe hit, currently trading at 94.70 following a 94.55 low, which represents the lowest since March 30th.
In terms of technicals, the first support should come at 94.40/50 (38.2% fib 91-96.50 run up) ahead of 94.00 round number and 93.80 (50% fib retrac). On the upside, an intraday swing high formed at 95.30 should be re-taken in order for bulls to regain some lost confidence.
The breakout comes as the smart money appears to be more keen on bidding the Japanese Yen, which combined with mounting tension in the Ukrainian crisis and the lower inflation pressures in Australia, has caused the rate to take a severe hit, currently trading at 94.70 following a 94.55 low, which represents the lowest since March 30th.
In terms of technicals, the first support should come at 94.40/50 (38.2% fib 91-96.50 run up) ahead of 94.00 round number and 93.80 (50% fib retrac). On the upside, an intraday swing high formed at 95.30 should be re-taken in order for bulls to regain some lost confidence.