Back
10 Dec 2014
AUD/JPY longs squeezed out in last push for September highs
FXStreet (Guatemala) - AUD/JPY is trading at 98.50, down -0.74% on the day, having posted a daily high at 99.49 and low at 98.36.
AUD/JPY has extended losses on a continuation of the downtrend and unwinding in the carry, pushing the hourly RSI towards oversold territory. Risk sentiment is fading and concerns for global growth risks are mounting with investors looking to the safe havens, such as the yen, and longs are being squeezed out of positions as the Yen continues to strengthen.
We have moved down to September highs and rapidly where there may be strong support. However a break of these levels opens up the downside wide open to the psychological 98.00 level.
Fundamentally, the FOMC may play a big roll next week in market developments and should the dollar continue to unwind then this may balance out the scales of the cross to some extent with a buoyed Aussie dollar as a result. However, the snap election results are up this weekend ad this prove unfavourable to Abe and support further supply in USD/JPY.
AUD/JPY has extended losses on a continuation of the downtrend and unwinding in the carry, pushing the hourly RSI towards oversold territory. Risk sentiment is fading and concerns for global growth risks are mounting with investors looking to the safe havens, such as the yen, and longs are being squeezed out of positions as the Yen continues to strengthen.
We have moved down to September highs and rapidly where there may be strong support. However a break of these levels opens up the downside wide open to the psychological 98.00 level.
Fundamentally, the FOMC may play a big roll next week in market developments and should the dollar continue to unwind then this may balance out the scales of the cross to some extent with a buoyed Aussie dollar as a result. However, the snap election results are up this weekend ad this prove unfavourable to Abe and support further supply in USD/JPY.