FXstreet.com (Barcelona) - AUD/JPY is currently at 85.80, still retracing from the +4.25% advance followed anticipated elections call in Japan by PM Noda 2 weeks ago, topping early Monday at fresh 8-month highs 86.44. Nikkei closed Tuesday up +0.45% above the 9400 points mark, adding for more than +8% gain in same period since the elections call, which will be held finally on Dec 16.

The cross has managed to break above long term descending trend line from year 2008 highs around 104.50, now working so far as support, with yesterday's and weekly lows at 85.59, while USD/JPY was being bid around the 82.00 figure, linked to some options expiries. Risk event for current Asian session will be Australian construction work done data for the 3Q, which according to some analysts may weight on upcoming Dec RBA meeting for a rate cut, latest downside risk for AUD/USD.

Immediate support to the downside for AUD/JPY lies at mentioned yesterday's low 85.59, followed by Friday's lows 85.31, and Nov 19 highs/38.2% Fib of 81.95/86.44 up leg at 84.77/84. To the upside, closest resistance shows at Thursday's highs 85.98, followed by yesterday's/Friday's highs at 86.26, and early Monday/fresh 8-month highs at 86.44.