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2 May 2013
Forex: AUD/JPY edges lower during Asia trade, unable to hold 100.30 support
FXstreet.com (Barcelona) - The AUD/JPY is leaking lower in early Asia trade, down 35 pips at 99.75. Earlier in the session, the Bank of Japan released minutes from its latest monetary policy meeting, but the release did not have much effect on the pair. Furthermore, Australia will be releasing its latest Building Permits (forecast +1.3%).
From a technical perspective, the pair is currently trading below the short term up trend line which had held support the previous three days (apx 100.30). This is a bearish development; particularly should the pair close be below this trend line. It would confirm a downward break of the pennant pattern on daily chart, which has targets as low as low as 95.30.
The FXStreet.com Trend Index remains Slightly Bearish on the 4 hour chart, while the OB/OS reads Oversold.
Furthermore, Andrew Spencer, Analyst at IFR Markets added, “Bollinger bands starting to expand - momentum studies head south Negative signals make Apr 99.15 low vulnerable NY afternoon 100.30 high is initial resistance”
From a technical perspective, the pair is currently trading below the short term up trend line which had held support the previous three days (apx 100.30). This is a bearish development; particularly should the pair close be below this trend line. It would confirm a downward break of the pennant pattern on daily chart, which has targets as low as low as 95.30.
The FXStreet.com Trend Index remains Slightly Bearish on the 4 hour chart, while the OB/OS reads Oversold.
Furthermore, Andrew Spencer, Analyst at IFR Markets added, “Bollinger bands starting to expand - momentum studies head south Negative signals make Apr 99.15 low vulnerable NY afternoon 100.30 high is initial resistance”