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1 Nov 2013
AUD/JPY tumbles on Nikkei
FXstreet.com (Athens) – The AUD/JPY has been trading downwards since the kick off of the Wellington trading session due to the Nikkei sharp fall, but the last hour seems to regain uptrend momentum.
The AUD/JPY is well capped below 93.00 area, since the ‘risk-off’ mode leading to Nikkei drop by over 1%, has strengthened the Japanese currency across the board. As it is widely known, there is an immense inverse correlation between Nikkei and the Japanese currency, so the sharp losses of Nikkei, led the Japanese currency to outperform across the board, dragging the AUD/JPY near 92.80 area. It is noteworthy to mention that China Manufacturing PMI – HSBC index, released over 50 (which differentiates growth to contraction), while also the Australian data released at very solid levels, indicating that RBA has every reason to refrain from any further easing.
Technical Aspects on the AUD/JPY
At the time of writing, the pair is trading at 92.74, down 0.28%. The FXstreet.com Trend Index shows the pair to be strongly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 92.50, 92.26, 92.03, and resistance at 93.34, 93.57 and 93.80, respectively
The AUD/JPY is well capped below 93.00 area, since the ‘risk-off’ mode leading to Nikkei drop by over 1%, has strengthened the Japanese currency across the board. As it is widely known, there is an immense inverse correlation between Nikkei and the Japanese currency, so the sharp losses of Nikkei, led the Japanese currency to outperform across the board, dragging the AUD/JPY near 92.80 area. It is noteworthy to mention that China Manufacturing PMI – HSBC index, released over 50 (which differentiates growth to contraction), while also the Australian data released at very solid levels, indicating that RBA has every reason to refrain from any further easing.
Technical Aspects on the AUD/JPY
At the time of writing, the pair is trading at 92.74, down 0.28%. The FXstreet.com Trend Index shows the pair to be strongly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 92.50, 92.26, 92.03, and resistance at 93.34, 93.57 and 93.80, respectively