30 Jul 2013
AUD/JPY slashes below key support at 89.39 on Stevens comments
FXstreet.com (Barcelona) - The AUD/JPY caught a brief lift early Tuesday on weak Japanese data, but then cascaded lower on the dovish comments made by RBA Governor Stevens’ at a speech just a couple of hours later.
AUD/JPY on verge of breakdown below support after Stevens’ speech
Economic data out of Japan late Monday night came in mixed with household spending and industrial production coming in below estimates while Japanese unemployment came in slightly better-than-expected. The initial reaction in the AUD/JPY after the data were released was a rally from 89.85 to 90.29.
Once Mr. Stevens’ speech was released, though, any data-related Yen weakness was far outweighed by the outright bearishness in the Aussie Dollar. The AUD/JPY dropped precipitously over the next four hours and is now trading just off the lows at 89.26 – below key support at 89.39.
AUDJPY Technical Outlook
If 89.39 support breaks, technicians see the AUD/JPY reaching down to at least 88.23 and possibly down to 87.52 – both of which are Fibonacci projections. Short-term resistance is now the 7/12 close at 89.79 and is backed up by the 7/22 high at 92.59.
AUD/JPY on verge of breakdown below support after Stevens’ speech
Economic data out of Japan late Monday night came in mixed with household spending and industrial production coming in below estimates while Japanese unemployment came in slightly better-than-expected. The initial reaction in the AUD/JPY after the data were released was a rally from 89.85 to 90.29.
Once Mr. Stevens’ speech was released, though, any data-related Yen weakness was far outweighed by the outright bearishness in the Aussie Dollar. The AUD/JPY dropped precipitously over the next four hours and is now trading just off the lows at 89.26 – below key support at 89.39.
AUDJPY Technical Outlook
If 89.39 support breaks, technicians see the AUD/JPY reaching down to at least 88.23 and possibly down to 87.52 – both of which are Fibonacci projections. Short-term resistance is now the 7/12 close at 89.79 and is backed up by the 7/22 high at 92.59.