FXstreet.com (San Francisco) - Does AUD/JPY carry potential for an upside breakout of key retracement resistance? Looking at higher timeframes, a 61.8% Fibonacci level at 83.20 (88.61/74.44 decline) continues to limit upside rallies, however, as we start the new week after three successive weekly advances, a retest of the 83.50 resistance area is possible.
Price is expected to trade sideways today as investors remain sidelined ahead of tomorrow’s BOJ monetary policy decision, when new easing is expected to be announced.
Should AUD/JPY break above mentioned resistance after the central bank’s announcement, the next level to overcome would be 83.93 (Oct 31, 2011 peak), then 84.80 (Mar 7 low) and 85.55 (78.6% Fibo, 88.61/74.44).
Keep in mind though, that the market has been pricing in new easing (JPY negative) for the past few weeks now, so, if the BOJ disappoints, and the market decides JPY requires a price correction, AUD/JPY support levels lie at 81.75 (Sep 7 high), 81.50 (50% Fibo) and 81.25 (Sep 28 high).
AUD/JPY currently trades at 82.50.
Price is expected to trade sideways today as investors remain sidelined ahead of tomorrow’s BOJ monetary policy decision, when new easing is expected to be announced.
Should AUD/JPY break above mentioned resistance after the central bank’s announcement, the next level to overcome would be 83.93 (Oct 31, 2011 peak), then 84.80 (Mar 7 low) and 85.55 (78.6% Fibo, 88.61/74.44).
Keep in mind though, that the market has been pricing in new easing (JPY negative) for the past few weeks now, so, if the BOJ disappoints, and the market decides JPY requires a price correction, AUD/JPY support levels lie at 81.75 (Sep 7 high), 81.50 (50% Fibo) and 81.25 (Sep 28 high).
AUD/JPY currently trades at 82.50.
