Forex: AUD/JPY extremely overcooked; sell signal looming? - Greg McKenna

FXstreet.com (Barcelona) - AUDJPY has ended the day on negative territory, printing a day low of 91.75 - retest of last week's broken resistance - before staging a mild comeback towards 92.15. Earlier in Asia, the pair had recorded its highest level since August 2008 at 92.80, although the run, exceedingly overbought, proved short-lived.

According to Greg McKenna, Founder at GlobalFX: "We have been on this Aussie Yen upswing for some time now in line with our view on the USDJY rally but technically this is a level worth watching and yesterday's high can serve as a tradeable stop point for shorts for aggressive traders who like this pattern and at the very least for longs we would drag our stops up closer to market now. Having said that though, AUDJPY is, in many ways, in a similar position to USDJPY insofar as it looks extremely overcooked but the signal has not yet been received for the turn - although it feels like we are only a day or so away now..."