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12 Nov 2014
AUD/JPY at key 76.4/78.6 fibo, bull momentum heatlhy
FXStreet (Bali) - AUD/JPY has retained the bullish tone pre-Tokyo open, with the 101.00 round number within striking distance as the biding persists.
The latest bout of Yen selling came after the Sankei newspaper said on Wedneday that Japanese PM Abe is set to delay a planned sales tax hike until mid 2017 and call a general election for December. Besides, an upbeat Westpac Consumer Confidence out of Australia, at 96.9 in Nov vs 94.8 last in Oct, is helping to sustain the rally.
Technically, the pair is at an important juncture - between 76.4/78.6 fib retrac of the 2013 decline, a level that also converges with the top of an ascending multi-month channel, suggesting that some fresh offers/profit taking activity may be due. However, signs of a bullish reversal in AUD/USD but persistent bidding in USD/JPY puts the odds in favour of further upside momentum short term.
The latest bout of Yen selling came after the Sankei newspaper said on Wedneday that Japanese PM Abe is set to delay a planned sales tax hike until mid 2017 and call a general election for December. Besides, an upbeat Westpac Consumer Confidence out of Australia, at 96.9 in Nov vs 94.8 last in Oct, is helping to sustain the rally.
Technically, the pair is at an important juncture - between 76.4/78.6 fib retrac of the 2013 decline, a level that also converges with the top of an ascending multi-month channel, suggesting that some fresh offers/profit taking activity may be due. However, signs of a bullish reversal in AUD/USD but persistent bidding in USD/JPY puts the odds in favour of further upside momentum short term.