Forex: AUD/JPY still capped by 61.8% Fibo; BoJ easing eyed
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AUD/JPY
FXstreet.com (San Francisco) - AUDJPY was again unable to overcome the 61.8% Fibonacci resistance barrier at 83.20 this week, a level that has been tested on three occasions in the last three months.
Friday saw the cross pull back from recent 9-week highs near 83.50, and is set to close higher for a third consecutive week, last quoted in the 82.50 price zone.
From here, tight ranges can be expected next week as banks and hedge funds will likely remain on the sidelines ahead of the much anticipated Bank of Japan policy meeting on Oct. 30. The BoJ is expected to announce an expansion of its AP program by another 10 trl yen, but if there are any surprises, we could see AUDJPY retest the 81.80 support zone, 81.50 (50% Fibo), and possibly the strong 38.2% fibo base at 79.80. Upside rallies may encounter resistance at 84.00 and 84.70.
Friday saw the cross pull back from recent 9-week highs near 83.50, and is set to close higher for a third consecutive week, last quoted in the 82.50 price zone.
From here, tight ranges can be expected next week as banks and hedge funds will likely remain on the sidelines ahead of the much anticipated Bank of Japan policy meeting on Oct. 30. The BoJ is expected to announce an expansion of its AP program by another 10 trl yen, but if there are any surprises, we could see AUDJPY retest the 81.80 support zone, 81.50 (50% Fibo), and possibly the strong 38.2% fibo base at 79.80. Upside rallies may encounter resistance at 84.00 and 84.70.
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