The AUD/JPY pair has been trapped in a range for the past 2 weeks between 93.60 and 89.60 and this week that range is even narrower. The last 5 daily candles all have a range of less that 100 pips. The 2 levels mentioned above just happen to be Key Fibo levels when drawn from the low in 2012 to the high in 2013, namely the 38.2 and 50% level’s respectively. When we look back, the 90.00/50% level was also important in March 2012, April 2011 and many times between 2005-2008 which adds strength to its current role as support. If prices remain above 90.00 and can break above 93.60 I expect we will see 97.00 in relatively short order where numerous highs & lows can be seen in 2013. To the downside, if 90.00 does give way to the bears, watch 86.40 where corrections & consolidations took place in December 2013 below which the most active zone was down at 82.50. The pair is poised to move, and indications at this time favor the downside, but don’t count a bullish run out anytime soon either!
