AUD/JPY Hits 50% And Waits

The AUD/JPY pair is once again at the 50% retracement level of the move from all the time highs last summer to this Januarys lows. The level has proven to be strong resistance as it has been tested since last week but not penetrated and the pair seems to be consolidating after it appreciates and creates new support levels for itself. A break of this level would seem bullish for the pair as it has consolidated here again around the 50% level and could be headed higher. Helping the cross are the fundamentals, first rising commodity prices, stronger economic readings and higher rates have helped the AUD move higher against the USD. The second side of the picture has the USD gaining some strength against the Yen, with the equity markets lacking sellers and the short-term rate scenario in the US moving significantly higher since the employment report last Friday. From a lagging indicator perspective we also have the 100 day moving average about to cross above the 200 day. All signs are pointing north for the pair.

Subscribe by RSS Subscribe by Email