Back
29 Aug 2013
AUD/JPY held support at 86.39 August lows; next move should be to 90.12
FXstreet.com (Barcelona) - The shorting of AUD/JPY as part of the “risk-off” trade saw a sharp reversal Wednesday as technical support held its ground and the US ruled out unilateral military action against Syria.
Global risk bulls back to buying AUD/JPY on the reversal in Syrian news
The AUD/JPY’s status as a gauge of risk for global investors was highlighted here in recent days. The problem with trading in such a gauge is that you can be victimized by headlines at any point. That clearly could have been the case for many unsuspecting traders Wednesday when headlines crossed the wires indicating the US would not engage in any unilateral military actions against Syria. The risk-off trade was quickly reversed and any shorts not on their proverbial toes were hammered.
In addition to being on the lookout for more market-moving Syrian news, AUD/JPY traders will have to digest Japanese foreign investment data, Japanese retail trade numbers, Australian new home sales and Aussie private capital expenditures.
Technical outlook for AUD/JPY
Technicians point out that key support for AUD/JPY was tested at 86.39. Now that it held up, they are expecting another corrective move higher up to 90.12. Shorter-term resistance for AUD/JPY comes in at 87.67. Any unexpected break of 86.39 support would lead yo a quick move down to 85.32.
Global risk bulls back to buying AUD/JPY on the reversal in Syrian news
The AUD/JPY’s status as a gauge of risk for global investors was highlighted here in recent days. The problem with trading in such a gauge is that you can be victimized by headlines at any point. That clearly could have been the case for many unsuspecting traders Wednesday when headlines crossed the wires indicating the US would not engage in any unilateral military actions against Syria. The risk-off trade was quickly reversed and any shorts not on their proverbial toes were hammered.
In addition to being on the lookout for more market-moving Syrian news, AUD/JPY traders will have to digest Japanese foreign investment data, Japanese retail trade numbers, Australian new home sales and Aussie private capital expenditures.
Technical outlook for AUD/JPY
Technicians point out that key support for AUD/JPY was tested at 86.39. Now that it held up, they are expecting another corrective move higher up to 90.12. Shorter-term resistance for AUD/JPY comes in at 87.67. Any unexpected break of 86.39 support would lead yo a quick move down to 85.32.