AUD/JPY: Bulls Committing for a Test of the 85 Handle
AUD/JPY has followed suit of its counterparts, with USD/JPY pushed on to
the 109 handle and the Aussie making a strong performance with iron ore
rallying 3% overnight and oil claiming back grounds in the $40.00's
bbls.
Risk was back on and investors are hardening up to this
kind of shock event in 2016, now prepared to just get on with it. While
oil was a big sell-off, it was not regarded as anything out of the scope
of an ordinary large move and we were soon to close the bearish gap as
London got going, breaking onto the 84 handle and only stopping to look
back at the half-way mark on the handle until chasing down 84.80
resistance as Tokyo got going. We may pause here ahead of the RBA
minutes coming up, but see what China does ahead of the release.
RBA minutes preview − what to expect in AUD/USD?
AUD/JPY levels
We
have broken last week's high and a continuation onto the 85 handle
targets 85.20 and 4th April highs before targeting the 200 dma at 86.03
and March high at 86.70. To the downside, support is seen at the 100 and
20 dma at the 84.20/30's with yesterday's daily low at 82.46 and last
major defence before late Feb lows just below the 80 handle.
