FXStreet (Bali) - AUD/JPY is pivoting directionless around the 97.00 whole number, after being nudged lower during a flash flight to safety on Thursday, only to rebound towards 97.20 recent highs, carving out its current intraday range from 97.25 to 96.80.

Technically, the range-bound conditions develop engulfed by a broader uptrend context, initiated since a major bottom was found around 94.00 last Aug 7, with the rate initiating a 3 cents run higher, although the stage of the bull run commences to feel like a bit top heavy, and any pick up in geo-political risks may cause some severe damage to those still holding longs.

For now though, the Aussie keep hanging in there, being the second best performer in recent weeks, only behind the USD, while in the Japanese Yen space, there is a sense that the market might be gearing up for some wilder moves to weaken the currency in the weeks/months to come, judging by both price action and potential major catalysts such as GPIF re-allocation into riskier assets or even fresh QQE measures by BoJ's Kuroda & Co. given recent low levels in the country's exports as well as housing spending (big disappointment today), which may limit progress in the inflation front.

Trades should be watchful on a potential break of the range, which should determine the next short term direction, either towards 97.50 (round and semi-round numbers tend to have a special magnet effect in Yen crosses) or 96.50.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center