The Japanese Yen has been on a massive rally against the AUD, currently sitting at a break of 20% this week. The Australian dollar has been holding up well considering the drop in copper and iron ore prices, but the Australian Banks have seen increased volatility this week and are likely to be impacted by their over-exposure to resource-related stocks. The global financial markets are heading into quarter-end with many major currencies and stocks seeing strong gains.
The Japanese Yen
It has broken above the 84.00 handles, and the 90.00 handle is a target for the Yen. The AUD/JPY has broken through some key support levels, with a break of 0.85 being one of many potential turning points on the chart. The RBA is meeting today, so comments regarding further rate reduction may provide some direction for this pair, but it remains to be seen if any comments will have any effect after its recent movements. The AUD/JPY has seen a break below the rising support line that has been established since July 2013, with the next major level of support at 0.83000.
The bullish sentiment on the pairing is strong, but there is no clear direction for the pair. The price action on this chart looks similar to many other pairs that have seen massive rallies within a short period of time. The price will likely hold around these key levels, especially if it breaks out of these levels by day end, and will look to test towards the 100% break in the future, at 90.5000. The AUD/JPY will likely remain range-bound and may see a consolidation period before another massive break.
The AUD/USD has been rallying against the USD but has seen massive gains after the Chinese GDP report. The RBA is expected to keep rates on hold, and the recent rally in this pair suggests that a test of 0.96400 may be possible. The USD/JPY is currently trading around the 101.00 handles, with a break below 100 being a strong indication that the Yen is strong while an extended retracement at this point would be a good buying opportunity for those looking to trade this pair long term with potential targets at 102.0000 before reaching higher levels towards 103-04 next year.
AUD/JPY
This pair is close to its highs today, around 84.8500, with the next level of support at 84.5000 and a break below there indicating that the pair may be heading towards its next target of 84.0000. The RBA meeting will provide some direction for this pair, with comments regarding further rate cuts or a reversal in interest rates helping to determine where this pair will head in the future. The Fed minutes are due out today, so there may be some volatility associated with that news as traders look for clues as to when they may decide to begin raising interest rates.
AUD/USD
This pair remains in a strong uptrend today, sitting at a recent high of 0.9700. The next major level of support is at 0.95500 and a break below that may see the pair on its way to testing the rising support line that was formed back in May. The AUD/JPY is also tracking higher today, with a handle around 103.8500 and with this pair currently sitting around 92.5000, a move above the 100 handles is likely to see this pair break above its previous resistance at 90.0000. The RBA meeting will provide some commentary for this pair and will be important for those looking to trade this pair short term.
AUD/CAD
This pair remains in a downtrend today, sitting at 0.73250 with support levels of 0.73000, 0.72500 and the 100 handles being a major level of support on this chart. The USD/CAD remains firmly in an uptrend, sitting at a recent high of 1.15233, with a break below 1.11675 indicating that the pair is moving higher and looking to test a move back towards the 1.18000 handles in the future. The Australian Dollar is likely to remain under pressure as long as the price of oil remains low and if the price continues to fall towards $40 next year, then we could see further downside action on this pair.
