Forex Flash: Redefined range trading dictates AUD/JPY – ANZ

FXstreet.com (Barcelona) - According to Tim Riddel, Head of Global Markets Research at ANZ, "The reversal of the AUDJPY seen off 55.00-55 was a reflection of a turn in AUD rather than a turn in JPY. The trading range that has formed since mid-2009 reflects the frustrating price action in other crosses and as the potential of an end to JPY strength has been forming."

As such, "Recent price action suggests a push through interim resistance (84.00-20) for a test of range peaks in the 88.00-90.00 area into 2013. This is seen as part of a larger scale push to an initial measured target of 94.75-95.00 and even potential to retrace in full the falls from 2007's highs (107.50-80)." Riddel adds.

"A dip below 83.00 should be seen as a warning that another slide to 81.75-82.00 is needed before the range can be more aggressively tested. A fall below 81.20 would undermine the potential for an early upside break out of the broader range." he warns.