13 Jan 2015
AUD/JPY breaks through 96.40, bear target at 95.70
FXStreet (Bali) - AUD/JPY is selling off in early Tokyo - traders are returning from a long weekend - , with the rate picking up downside momentum after a breakout of 96.40 support, setting its lowest so far at 96.16.
The main risk event for the pair in Asia is the Chinese trade figures, due at 2 GMT. But even before the data hit the wires, volatility in favour of Yen reigns, with a negative start for the Nikkei 225, down almost 2%, weighing on AUDJPY bulls.
Technically, the decisive breakout of 96.40, potentially opens up fresh downside towards 96.00 round number, although the major bear target will not be met until 95.70, Jan 6 low. On the upside, a retest of 96.40/40 should see selling interest re-emerge, for a potential continuation of the current down-cycle in the pair, following the first impulsive push down earlier on Monday from 97.50+ to 96.40
The main risk event for the pair in Asia is the Chinese trade figures, due at 2 GMT. But even before the data hit the wires, volatility in favour of Yen reigns, with a negative start for the Nikkei 225, down almost 2%, weighing on AUDJPY bulls.
Technically, the decisive breakout of 96.40, potentially opens up fresh downside towards 96.00 round number, although the major bear target will not be met until 95.70, Jan 6 low. On the upside, a retest of 96.40/40 should see selling interest re-emerge, for a potential continuation of the current down-cycle in the pair, following the first impulsive push down earlier on Monday from 97.50+ to 96.40