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26 Jun 2013
AUD/JPY, topside failure at 90.90 hints range extension
FXstreet.com (Barcelona) - The AUD/JPY is retracing off its session highs at 90.90 as a result of bearish pressure intensifying in equities, with both the Nikkei and the Shanghai SEC well into the red. The pair is currently at 90.35, session lows.
Range-bound environment
Ever since the pair found a temporary bottom just above 89.00 on June 13, followed by a second and third test on June 20, 21, the cross is capped in a well defined 200 pips range between 89.00 and 91.00.
Buyers running for the exits
The last move off 89.55 support intraday to current topside failure at 90.90 developed in waves of higher highs and higher lows - see intraday price action - however, the latest sell-off, has damaged the outlook for a potential breakout higher. Should the cross dip further below 90.25 - June 25 low - the 90.00 handle ahead off 89.55 would be exposed. On the upside, only a break and hold above the 91.00 would clarify the technical picture in the near term. Until the picture clears up, erratic moves are expected to remain.
Range-bound environment
Ever since the pair found a temporary bottom just above 89.00 on June 13, followed by a second and third test on June 20, 21, the cross is capped in a well defined 200 pips range between 89.00 and 91.00.
Buyers running for the exits
The last move off 89.55 support intraday to current topside failure at 90.90 developed in waves of higher highs and higher lows - see intraday price action - however, the latest sell-off, has damaged the outlook for a potential breakout higher. Should the cross dip further below 90.25 - June 25 low - the 90.00 handle ahead off 89.55 would be exposed. On the upside, only a break and hold above the 91.00 would clarify the technical picture in the near term. Until the picture clears up, erratic moves are expected to remain.