Forex: AUD/JPY to fresh session lows ahead of RBA
Forex pairs in this Article »
AUD/JPY
FXstreet.com (Barcelona) - With worst Building Approvals figure for Australia in last 3 months, AUDJPY is currently dropping to fresh session lows last at 85.59, resuming the retrace started at NY session highs 85.93, still below starting weekly price. According to Sean Lee, founder at FXWW: "prime broker reports suggesting that there have been big build ups in carry trade longs over the last few weeks," the analyst says.
Ahead of key risk event for today in the form of RBA rate statement at 03:30 GMT, mostly expected to cut from current 3.25% to 3%, Sean thinks that "AUDJPY is the pair most likely to move sharply," while "to stay relatively quiet ahead of that." The cross has been on a consolidation move above long term descending trend line coming from 2007 highs, quoting at the same price now that was doing 8 days ago.
Immediate support to the downside for AUDJPY lies at yesterday's weekly low 85.38, followed by Wednesday's lows at 85.23, and April 18-23 highs at 84.75. To the upside, nearest term resistance shows at Monday's NY session/Nov 22 highs 85.93/7, followed by Nov 29 highs at 86.12, and Nov 27/30 highs at 86.25.
Ahead of key risk event for today in the form of RBA rate statement at 03:30 GMT, mostly expected to cut from current 3.25% to 3%, Sean thinks that "AUDJPY is the pair most likely to move sharply," while "to stay relatively quiet ahead of that." The cross has been on a consolidation move above long term descending trend line coming from 2007 highs, quoting at the same price now that was doing 8 days ago.
Immediate support to the downside for AUDJPY lies at yesterday's weekly low 85.38, followed by Wednesday's lows at 85.23, and April 18-23 highs at 84.75. To the upside, nearest term resistance shows at Monday's NY session/Nov 22 highs 85.93/7, followed by Nov 29 highs at 86.12, and Nov 27/30 highs at 86.25.
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