Forex: AUD/JPY retracing from 20-month highs above 89.00

FXstreet.com (Barcelona) - AUDJPY tripped above short position stops in ealry Tokyo morning trade, market sources say, reaching a fresh 2012 high at 89.06, currently retracing to 88.48, around previous highs on Friday, still a +0.29% higher from weekly close Friday. Election results in Japan, showing a landslide victory from opposition LDP party, have weighed on Yen weakness, making the cross AUDJPY to print fresh 20-month highs.

According to Greg McKenna, CEO at GlobalFX and former Head of Currency Strategy at the NAB and Westpac, AUDJPY "is heading up toward the highs of the past 4 and a half year period," the analyst suggests, while Nikkei index sits right below the 9.9k mark, up +1.61% for the day, highest since early March 2012. Also from Sean Lee's point of view, founder at FXWW, "AUDJPY is now technically targeting a daily high at 90.00."

Immediate resistance to the upside for AUDJPY shows at recent session and 20-month highs at 89.06, followed by April 28 2011 highs at 89.60, and April 11 highs at 90.03. To the downside, closest support lies at current levels as Friday's highs around 88.45, followed by Thursday?s highs at 88.29, and Friday's lows at 87.82.