“It remains our view that substantial weakness is still ahead for Yen given that it is fundamentally too strong for the Japanese economy and has been for too too long,” says Greg McKenna, Founder at GlobalFX and former Head of Currency Strategy at the NAB and Westpac. “Obviously its fall won't be a straight line but Yen weakness looks to be an enduring trend,” the analyst expands. This yen weakness, Greg adds, “is likely to bias the AUDJPY higher in time although at the moment might be a little stretched, look like it is biased up toward 87 sometime soon. Any move back toward 84.15 would be massive support,” the analyst concludes.
Immediate resistance to the upside for AUD/JPY shows at March 12 lows 86.05, followed by Feb 20 highs at 86.36, and April 02 highs at 86.77. To the downside nearest term support lies at yesterday's highs 85.45, followed by Wednesday's NY session lows at 85.10, and Monday's highs at 84.79.