There is talk in the market that sellers are camped around 86.50, with some threat of run-on-stops above the number. A decisive break and consolidation outside the current daily range will open up the way for 2012 high at 88.60 area.
Traders should note that since the BoJ seems extremely committed to pursue powerful easing measures, and odds of 25bps rate cut from the RBA in February have now collapsed from 63% to around 50% after the jobs data, the long play seems a sensible strategy once the range break is confirmed and a retest to former resistance comes about.
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