Forex: AUD/JPY stalling ahead of the 96 round

FXstreet.com (Barcelona) - Volatility in the AUDJPY cross as measured by its average daily range has been slowing down since it peaked by the end of last week, at near 1-year high levels, now averaging 122 pips per day, quoting last at 95.50, up more than +16% since mid Nov when anticipated general elections were called in Japan, and the cross found support at the 200 day SMA. The cross is up +0.73% for the week so far.

The cross is now near session lows, following mixed PMI manufacturing data out of China, with AUDUSD holding above the 1.0400 figure, plummeting from the session highs area around 1.0550. USDJPY has stabilized in the last hour, after touching another fresh 31-month high above the 91.50 mark. According to FXWW founder Sean Lee, it is "Time to take a risky short position" in AUDJPY, and so he has "just gone short at 95.50 with a tight-ish stop above 96.00," the analyst says.

Immediate resistance to the upside for AUDJPY shows at recent session and fresh 4-year highs 95.78, followed by Feb 23 2007 highs at 95.94, and Aug 18 2008 highs at 96.45. To the downside, closest support lies at recent session lows/Wednesday's highs at 95.45/39, followed by past Friday's highs at 95.05, and Tuesday's/yesterday's lows at 94.38/27.