26 Sep 2013
AUD/JPY attempting to lift after tough day Wednesday; 92.36 upside level to beat
FXstreet.com (Barcelona) - AUD/JPY took it on the chin again Wednesday as global traders and portfolio managers continued to use the cross as a way to hedge their core long holdings.
AUD/JPY likely to be in “sell the rip” mode until overall market mood improves
The AUD/JPY cross continues to be one of the primary ways traders play the swings in global risk appetite. Right now, with the mood dictating a “risk off” posture, portfolio managers are using AUD/JPY to short against their existing long risk (likely equity) holdings or they are simply shorting it straight up as a more aggressive trade.
With no news due out Thursday from either Australia or Japan, this “risk-on / risk-off” phenomenon will continue to push the AUD/JPY in one direction or the other.
Technical outlook for AUD/JPY
Technicians note that the oversold AUD/JPY is bouncing but will have to conquer the 92.36 level to open up more upside potential. Once this bounce runs its course, they say another push lower is expected that could take the cross at least down to 91.88.
AUD/JPY likely to be in “sell the rip” mode until overall market mood improves
The AUD/JPY cross continues to be one of the primary ways traders play the swings in global risk appetite. Right now, with the mood dictating a “risk off” posture, portfolio managers are using AUD/JPY to short against their existing long risk (likely equity) holdings or they are simply shorting it straight up as a more aggressive trade.
With no news due out Thursday from either Australia or Japan, this “risk-on / risk-off” phenomenon will continue to push the AUD/JPY in one direction or the other.
Technical outlook for AUD/JPY
Technicians note that the oversold AUD/JPY is bouncing but will have to conquer the 92.36 level to open up more upside potential. Once this bounce runs its course, they say another push lower is expected that could take the cross at least down to 91.88.