The AUD/JPY printed a spinning top off of resistance at 92.50 yesterday and has since been falling slowly during Asian Trading. The resistance level at 92.50 is a strong one with numerous directional changes going back to the early 1990's. Also, the pair is massively overbought as are most of the JPY crosses and we see that the Daily Stochastic indicator has completed a bearish cross above the 20 level, suggesting more of a bearish movement to come. In spite of Mr.Abe's desire to drive the Japanese Yen to the 90 level, there is still weakness in other currencies as well, such as the Aussie Dollar which is in fact one of the better performers as of late along with its cousin the Kiwi (NZD/USD). At time of writing, the pair is finding some support on the Monthly R1 at 91.74, which is also the high for both January 02 & 03 last week. Is this enough to halt the bears? I don't really believe so, but time will tell. There is also support at 91.19 but below that we can see the pair falling to at least 90.00 or most likely the 88-89.00 area that provided such resistance in December. If yesterday's high is breached instead, zones at 96.43 and 100.00 become the next key levels to achieve, and could be reached if the AUD holds its value or Mr.Abe rolls out more QE to weaken the Yen.
Happy Trading!