The AUDJPY stops above 75.00 this morning provided the support to the AUDUSD for a push into the 7880’s. But with no follow thru and sellers out of Japan, it has retraced back to the 7850 area. It was anticipated that there would be some big AUDJPY buying flows today, but with no such evidence, front running longs are trimming their positions back.
Buy orders are lined up between 7670-7700 and sellers topside as Sean mentioned between 7920-50. Techincally AUDUSD should be poised for a move higher to 7930 after the bullish outside candle formation yesterday( 7930 is the 50% Fibo retracement level ). However Japanese traders are also looking at the weekly Ichimoku cloud. The top of that cloud comes in at 7930 area as well which they say may prove a touch resistance.
On the day I would be playing the 7820-7880 area with a shorting bias. Above 7880 should see the 7930 area tested.
Im still looking to establish shorts as we appoach 80c.
