AUD/JPY: supply heading for key supports

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/JPY was licking its wounds after losing the 0.73 handle in a soft commodities sector and the greenback losing ground to the Yen.

    In recent moments, there has been supply in the Aussie while PBoC said to be injecting CNY 10b via 7 day reversals and sets the ref rate mid point for CNY at 6.4078 and lowest levels since August 27th. There are major concerns over the Chinese economy and commodity prices and all are pressuring the Australian markets. We will now wait to see what damage may, or may not, come of the Chinese trade balance on the hour.

    AUD/JPY levels

    Technically, the price is on the verge of a breakout to the downside targeting the 100 SMA on the 4hr at 0.7224 for a break of the 0.72 handle and test of 0.7180 on the same time frame where the 200 SMA sits as a key support in late Nov business. This is also where the MA's on the daily chart coverage so should be a strong level of support.
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