AUD/JPY rallying following bullish reversal Thursday

FXstreet.com (Barcelona) - The AUD/JPY posted the dreaded “bearish engulfing” candle which typically means a change of direction to the downside.

China’s PMI gave AUD/JPY a big-time boost

China’s PMI came out ahead of estimates Thursday and gave everything levered to China a boost of energy. The AUD/JPY cross opened lower but finished higher in what is referred to in technical circles as a bullish engulfing candle. This type of candle typically means that the short-term direction is higher.

Technical outlook for AUD/JPY

Technicians say the key resistance for AUD/JPY comes in at 91.34 (Fibonacci generated). Support for AUD/JPY comes in at the low from yesterday of 87.40.

Flash: NZD/USD to gradually fall towards 0.75 - ANZ

According to David Croy, FX Strategist at ANZ, Fed tapering along with normalisation of policy settings in the US should lead to a gradual fall in NZD/USD towards 0.75 by the end of 2014.
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EUR/GBP holding above 0.8550 ahead of UK GDP

The EUR/GBP foreign exchange cross rate is last trading near session lows at 0.8564 marginally lower for the Asian session but unchanged from Wednesday's open, off double weekly high at 0.8577, ahead of key risk event in the form of UK second estimate GDP q/q at 08:30 GMT.
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