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12 Dec 2014
AUD/JPY setting up ahead of Japanese elections
FXStreet (Guatemala) - AUD/JPY is trading at 98.03, down -0.34% on the day, having posted a daily high at 98.45 and low at 97.70.
AUD/JPY has moved up vs a trend making lower lows on the past few sessions as the Yen pushes the greenback again and takes the major down to the lower end of the 118 handle and remains below critical 119.00 that was attempted. The greenback is being driven lower on the basis of volatility and disinflationary pressures, lower yields and oil.
Analysts at TD Securities explained that they continue to caution that seasonal pressures tend to weigh on the USD broadly through the December month. “We also suspect that USD weakness is likely to remain relatively shallow and short-lived”.
With this in mind, the Aussie tends to do better at this time of year, or certainly of recent years, but next week could determine the greenbacks position heading into year end with CPI and FOMC while the Yen is going to be driven on the outcome of this weekend's snap elections in Japan. 98.00 in the cross is a strong and key support and an Abe victory may see the cross considerably higher with targets of 100.00 to turn into support again. On the other hand, 96.00 to the downside is the equivalent to the bearish scenario.
AUD/JPY has moved up vs a trend making lower lows on the past few sessions as the Yen pushes the greenback again and takes the major down to the lower end of the 118 handle and remains below critical 119.00 that was attempted. The greenback is being driven lower on the basis of volatility and disinflationary pressures, lower yields and oil.
Analysts at TD Securities explained that they continue to caution that seasonal pressures tend to weigh on the USD broadly through the December month. “We also suspect that USD weakness is likely to remain relatively shallow and short-lived”.
With this in mind, the Aussie tends to do better at this time of year, or certainly of recent years, but next week could determine the greenbacks position heading into year end with CPI and FOMC while the Yen is going to be driven on the outcome of this weekend's snap elections in Japan. 98.00 in the cross is a strong and key support and an Abe victory may see the cross considerably higher with targets of 100.00 to turn into support again. On the other hand, 96.00 to the downside is the equivalent to the bearish scenario.