Forex: AUD/JPY hits 9-month highs; eyes resistance at 88.60

FXstreet.com (San Francisco) - The Japanese yen fell to a nine-month low against the Australian dollar on Friday, as traders continue to price in expectations of more Bank of Japan (BOJ) easing after the nation's upcoming weekend elections. AUDJPY has rallied as high as 88.37, extending weekly gains to 2.2% and approaching key resistance in the 88.60 price zone. A break above mentioned resistance would open scope for a retest of the 90.00 handle. Above there lies resistance at 91.65 (Aug 2007 low), then 93.00 (Aug 2008 low) would be next bullish target. 87.75 (50-hr EMA) 87.56 may support on dips, then (Mar 27 high).

Japan's on-month Industrial Production figures for October came in soft at 1.6% (exp: 1.8%) from a revised 1.8% reading in September. In earlier trade, the BOJ Tankan survey showed Japanese business sentiment worsened in Q4, as expected, adding further pressure on the Central Bank.