Forex: AUD/JPY, a top is in - GlobalFX

FXstreet.com (Barcelona) - Following US markets closed for Thanksgiving Day, and today's Tokyo also closed on holiday, AUDJPY has been muted all day long, currently flat from previous Asia-Pacific open yesterday, at 85.62 last. The cross has risen a nice +3.43% since anticipated general elections in Japan were called, and all the implications surrounding it, while Nikkei index has done so a +7.63%. At the same time USDJPY has risen +4.02%, but instead AUDUSD is lower, which explains why AUDJPY has not jumped that much.

In any case,Greg McKenna, Founder at GlobalFX and former Head of Currency Strategy at the NAB and Westpac, thinks there is some top shaping up at this point, "So I'm going to go out on a limb and say I expect a pullback back toward 84.15 soon," the analyst says. Still, it does not mean he's bearish: "This cross has had a great run recently and while I still favour a move to 87ish eventually if the USDJPY is going to have a rest, in the manner I think, then this cross too is due a consolidation," Greg explains.

Immediate resistance to the upside for AUDJPY shows at recent fresh 7-month highs 85.67, followed by Feb 20 highs 86.36, and April 02 highs at 86.77. To the downside, closest support lies at yesterday's lows/Wednesday's highs at 85.43, followed by March 07 lows/April 20 highs at 84.76/8, and Nov 07 highs at 84.16.