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26 Feb 2013
Forex: AUD/JPY bounces back to key 95.00 area
AUD/JPY is currently at 95.10, off fresh 1-month lows at 93.55 printed in late NY session, following growing uncertainties on Italian elections, that lead to a massive sell-off in different risky assets, including equities, with SP500 down -1.83%, or Oil -1.17% by NY close, while a big jump in bond prices, or lower yields, making 10 year US bond yields fall to 1-month lows around 1.88%.
The bounce came in the back of mostly Yen weakness, with USD/JPY going from fresh Feb lows at 90.84 to recent session highs at 92.75, 50% Fibo retrace of latest leg down from yesterday's top to bottom, while Aussie has also recovered part of the loses later on, last at 1.0285, after RBA assistant governor Guy Debelle's comments saying RBA could cut cash rate to offset high AUD. Nikkei index is down -1.37% for the day so far, leading the loses in an overall red local share markets scenario.
Immediate resistance to the upside for AUD/JPY shows at recent session highs/Thursday's lows 95.05/35, followed by Feb 15 lows at 95.55, and Feb 13 lows at 96.05. To the downside, closest support lies at Jan 14 highs 94.70, followed by Jan 31 lows at 94.22, and Jan 28 lows at 94.05.
The bounce came in the back of mostly Yen weakness, with USD/JPY going from fresh Feb lows at 90.84 to recent session highs at 92.75, 50% Fibo retrace of latest leg down from yesterday's top to bottom, while Aussie has also recovered part of the loses later on, last at 1.0285, after RBA assistant governor Guy Debelle's comments saying RBA could cut cash rate to offset high AUD. Nikkei index is down -1.37% for the day so far, leading the loses in an overall red local share markets scenario.
Immediate resistance to the upside for AUD/JPY shows at recent session highs/Thursday's lows 95.05/35, followed by Feb 15 lows at 95.55, and Feb 13 lows at 96.05. To the downside, closest support lies at Jan 14 highs 94.70, followed by Jan 31 lows at 94.22, and Jan 28 lows at 94.05.