27 Jan 2014
AUD/JPY: Solid selling interest camped circa 89.00
FXstreet.com (Bali) - Sales in AUD/JPY are picking up momentum during the Tokyo session, as the pair comes sharply off highs by more than 30 pips.
After an initial pop higher to test offers at the 89.00 handle, sellers camped at the round number forced a depreciation of the pair towards 88.65, in synchronization with sellers stepping in around the 15,000 big round number in the Nikkei 225.
On the back of a break below 91.00 support last week, coupled with risk aversion trades back in fashion, AUD/JPY has entered a new phase of greater volatility, with the actual exchange rate allowing room for wilder swings.
On the upside, 89.50 ahead of 90.00 are the immediate resistances to bear in mind ahead of the aforementioned 91.00 old support-turned-resistance. On the downside, risk off accelerating may see sharp declines towards 86.50.
After an initial pop higher to test offers at the 89.00 handle, sellers camped at the round number forced a depreciation of the pair towards 88.65, in synchronization with sellers stepping in around the 15,000 big round number in the Nikkei 225.
On the back of a break below 91.00 support last week, coupled with risk aversion trades back in fashion, AUD/JPY has entered a new phase of greater volatility, with the actual exchange rate allowing room for wilder swings.
On the upside, 89.50 ahead of 90.00 are the immediate resistances to bear in mind ahead of the aforementioned 91.00 old support-turned-resistance. On the downside, risk off accelerating may see sharp declines towards 86.50.