15 Oct 2013
Plenty of risk nay-sayers out there; AUD/JPY action telling them they are wrong
FXstreet.com (Barcelona) - AUD/JPY telling a clear story for those willing to pay attention. Despite the many obvious concerns around the globe, the proper stance right now is to be long of risk assets.
AUD/JPY rallying Tuesday on RBA minutes and continuation of bullish trend
Washington follies – reason to worry – now being pushed to the side by the bulls.
European stragglers (read Greece and Spaion) causing problems – overshadowed by theorized growth elsewhere in Europe.
Surprise spottiness in Chinese data – overshadowed by potential temporary fix in Washington.
Etc., etc. The bottom line is that when the biggest fish in the world want to find reasons to push markets higher, they will not only find them, but they will blow off anything resembling a bearish piece of news / data / information.
Tuesday, the minutes from the Reserve Bank of Australia’s monthly monetary policy meeting were released, absorbed by the market and interpreted as being bullish. In just a little while, Japanese Industrial Production will be released - giving traders yet another data point to consider – and likely to interpret as being AUD/JPY bullish.
Barring some unexpected bearish developments out of Washington later Tuesday or in the next several days, the current trend is likely to continue for a while longer before a pause to refresh is called for.
Technical outlook for AUD/JPY
Technicians say AUD/JPY conquered “correction resistance” at 93.00 last week – creating a very strong possibility of more gains to come (even if a pullback like this one were to occur first). Support comes in at 92.10. The next upside target above last week’s high of 93.43 is the 9/19 high of 94.43.
AUD/JPY rallying Tuesday on RBA minutes and continuation of bullish trend
Washington follies – reason to worry – now being pushed to the side by the bulls.
European stragglers (read Greece and Spaion) causing problems – overshadowed by theorized growth elsewhere in Europe.
Surprise spottiness in Chinese data – overshadowed by potential temporary fix in Washington.
Etc., etc. The bottom line is that when the biggest fish in the world want to find reasons to push markets higher, they will not only find them, but they will blow off anything resembling a bearish piece of news / data / information.
Tuesday, the minutes from the Reserve Bank of Australia’s monthly monetary policy meeting were released, absorbed by the market and interpreted as being bullish. In just a little while, Japanese Industrial Production will be released - giving traders yet another data point to consider – and likely to interpret as being AUD/JPY bullish.
Barring some unexpected bearish developments out of Washington later Tuesday or in the next several days, the current trend is likely to continue for a while longer before a pause to refresh is called for.
Technical outlook for AUD/JPY
Technicians say AUD/JPY conquered “correction resistance” at 93.00 last week – creating a very strong possibility of more gains to come (even if a pullback like this one were to occur first). Support comes in at 92.10. The next upside target above last week’s high of 93.43 is the 9/19 high of 94.43.