Forex: Sanguinary Yen trend sends AUD/JPY to 92.75

FXstreet.com (Barcelona) - The bleeding on the Japanese Yen seems to have no end in sight, as additional sell orders continue to consistently enter the market and damage the value of the currency. Against the Australian Dollar, a new 4 year and 4 month high has been printed at 92.75, leaving Friday's high at 92.50 behind.

A story doing the rounds about pressure taken off the RBA shoulders to be forced to cut rates further, as Australia's four largest banks areconsider cutting mortgage rates due to falling funding costs, seems to have been a reason strong enough to strengthen the 'safe harbor' appeal of the Autralian Dollar. The move higher follows Friday's 'risk on' moves post in-line with consensus NFP data.

Technically, AUDJPY is likely to face the next resistance level at 93.00 round number, level aligning with sequence of weekly lows from August 2008. Once consolidation is seen above, the 95.00 would no longer be seen as a prospect that far anymore, should the buying power keep up its uptrend tone, in which no two consecutive days of losses have been recorded since Oct 5, quite an extraordinary run. On the downside, 92.50 offers first support ahead of stronger 91.80, Jan 2 high.