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7 Jan 2015
AUD/JPY closes below 200-day MA
FXStreet (Bali) - AUD/JPY continues to trade vulnerable to further downside, with Tuesday's close at 95.75 on safe haven bids - day lows and cheapest since Dec 18 - reinforcing the notion that 95.00 is a reachable target near term.
Offers layered above 0.8150 in AUD/USD coupled with a stop hunt through 118.50 in USD/JPY, saw the heavy tone in AUD/JPY extend on Tuesday, with persistent selling in the S&P500 and strong demand for US Treasurys aiding to Yen buying interest.
Technically, AUD/JPY closed below the 200-day MA, with the area comprised between 96.20/50 - retest of 200-day MA - now seen as 'value area' to re-establish short positions on strength. On the downside, mid and round numbers should continue to act as magnets, with a break below 95.00 probably exposing 94.50 ahead of 94.00. Note, Wed's Fed minutes should inject fresh volatility in all Yen crosses.
Offers layered above 0.8150 in AUD/USD coupled with a stop hunt through 118.50 in USD/JPY, saw the heavy tone in AUD/JPY extend on Tuesday, with persistent selling in the S&P500 and strong demand for US Treasurys aiding to Yen buying interest.
Technically, AUD/JPY closed below the 200-day MA, with the area comprised between 96.20/50 - retest of 200-day MA - now seen as 'value area' to re-establish short positions on strength. On the downside, mid and round numbers should continue to act as magnets, with a break below 95.00 probably exposing 94.50 ahead of 94.00. Note, Wed's Fed minutes should inject fresh volatility in all Yen crosses.