AUD/JPY thrives in risk-on environment, targets a break of 85 handle
|Currently, AUD/JPY is trading at 84.89, up 0.06% on the day, having posted a daily high at 84.91 and low at 84.76.
Forex today: improved risk sentiment across the board, GBP/USD worst performer
AUD/JPY is up to challenge the 84.80/00 resistance area with risk-on and a better bid Aussie on the back of a turn around in metals. However, Imre Speizer, an analyst at Westpac argues that "fFurther out, though, the underlying AUD trend should be gently lower, as growing bulk commodity supply gradually cools the 2016 price surge. Iron ore should be back under $80/tonne by June, with further (modest) declines likely in H2 2017. (21 March)."
Meanwhile, economist, Kit Juckes, at Societe Generale is bullish on AUD/JPY, "USD/JPY is in no man's land, needing to form a clear base before yen sellers re-emerge. The lack of volatility and a yield-hunting environment generally, are conducive to that base being formed around here, and should support AUD/JPY as well as EUR/JPY."
AUD/JPY levels
AUD/USD bulls capped at 0.7650, too much too soon?
AUD/JPY broke the descending resistance line and the hourly 50 sma at 84.29. This is a correction of the 87.20 downtrend and a bounce off the 200-d EMA at 83.79. Further probes of the 85 handle open the door to 85.49 and 22nd March highs. The 8th March lows at 85.84 guard 86.05 21st March lows. 81.50 on the wide marks the summer 2016 highs as a key target below 82.60.
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