Forex: AUD/JPY taking some breath below 88.00

FXstreet.com (Barcelona) - With eyes now pointing to this weekend's Japan elections, and tomorrow's HSBC Flash manufacturing PMI China, AUD/JPY is currently at 87.75, retracing from fresh 8-month highs at 88.05, printed just after the FOMC release, where FED Chairman Bernanke pointed out that the easing will continue as long as it is needed.

The cross is up some +1.38% for the week, now facing some profits taking coming from Aussie longs, on the back of falling equities, making SP500 closing about even with a +0.04% advance for the day, leaving a hanging man pattern in its daily candle chart, when at one point it was printing fresh 1-month highs. RSI 14 daily for AUD/JPY cross shows a reading at 75.52 in overbought area, with a bearish divergence with respect to previous Nov highs.

Immediate resistance to the upside for AUD/JPY shows at mentioned NY session fresh 8-month highs at 88.05, followed by March 19 highs at 88.64, and April 28 2011 highs at 89.60. To the downside, closest support lies at Wednesday's NY session lows 87.34, followed by yesterday's lows at 86.89, and Friday’s highs at 86.70.

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