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13 Nov 2014
AUD/JPY: headline-driven JPY pauses rally
FXStreet (Bali) - AUD/JPY trading activity has come to an absolute standstill in the last few hours ahead of 100.80 resistance, with a slim range right below the level dominating conditions for now.
The 100.80/101.00 represents the 76.4/78.6 fibo retrac from the 2013 decline, while also converging with the topside of an ascending 2014 channel. JPY order flow has been unusually low at the Tokyo open, with the market treating the Yen with caution ahead of an official confirmation on a sales tax delay to mid-2017 (should be Yen negative ST) and the dates for a more than likely snap election before the end of 2014.
A break above 100.80 is now necessary to garner further momentum towards 101.00 round number ahead of a possible acceleration targeting 101.80/102.00, sequence of highs from May 2013. On the downside, stops from fast money accounts are probably gathering below the 100.00 round number and/or 99.70 horizontal support, making these are the key ones to monitor.
The 100.80/101.00 represents the 76.4/78.6 fibo retrac from the 2013 decline, while also converging with the topside of an ascending 2014 channel. JPY order flow has been unusually low at the Tokyo open, with the market treating the Yen with caution ahead of an official confirmation on a sales tax delay to mid-2017 (should be Yen negative ST) and the dates for a more than likely snap election before the end of 2014.
A break above 100.80 is now necessary to garner further momentum towards 101.00 round number ahead of a possible acceleration targeting 101.80/102.00, sequence of highs from May 2013. On the downside, stops from fast money accounts are probably gathering below the 100.00 round number and/or 99.70 horizontal support, making these are the key ones to monitor.