3 Jan 2014
AUD/JPY caught in the descending channel
FXstreet.com (Guatemala) - AUD/JPY has spiked from 0.9300 to reach a high of 0.9359 where fresh supply has capped the pair for the time being.
With Tokyo out, the Yen is subject to a lack of support from importers and Japanese funds which has allowed the pair to ride to the top of the descending channels resistance. This might be offering the bears an opportunity to place their stops and play the downside yet again. The calendar is light for both domiciles and trading is subsequent to US markets and the commodities with Gold and Oil making territory in their respective market places.
Markets focus on US
The market today has been dominated by the US market and trading through USD/JPY and AUD/USD sees the cross with a 69 pip move. The US data from earlier in the sessions in the manufacturing sector has also put some optimism into the Greenback ahead of the next FOMC meeting. The ISM manufacturing printed yet another strong number and is consistent to an on going taper. The Fed is widely expected to continue with its tapering programme at forthcoming FOMC meetings.
With Tokyo out, the Yen is subject to a lack of support from importers and Japanese funds which has allowed the pair to ride to the top of the descending channels resistance. This might be offering the bears an opportunity to place their stops and play the downside yet again. The calendar is light for both domiciles and trading is subsequent to US markets and the commodities with Gold and Oil making territory in their respective market places.
Markets focus on US
The market today has been dominated by the US market and trading through USD/JPY and AUD/USD sees the cross with a 69 pip move. The US data from earlier in the sessions in the manufacturing sector has also put some optimism into the Greenback ahead of the next FOMC meeting. The ISM manufacturing printed yet another strong number and is consistent to an on going taper. The Fed is widely expected to continue with its tapering programme at forthcoming FOMC meetings.