Forex: AUD/JPY: bids triggered after RBA decision

FXstreet.com (San Francisco) - AUDJPY has turned intraday bullish on the back of AUD buying interest after the Reserve Bank of Australia cut interest rates by 25 bps, as expected. Although the result was widely anticipated, the market appears to have interpreted this as a relatively soft reading. The cross now trades around 85.70 after bouncing from an intraday low of 85.38 and climbing as high as 85.85 on short-term speculative positioning. Price remains within range of a horizontal channel between 85.20 and 86.50, and around a 78.6% Fibonacci retracement of the decline from 88.57 to 74.44.

From Sean Lee, founder of FXWW: "According to positional reports in the professional market, it would seem that there has been a significant build-up in AUDJPY longs over the last few weeks. A quick look at the 4-hour chart suggests to me that if there are trailing stops, they are likely to be placed below 85.20. This could be the important level to watch if the RBA cuts rates as expected."