AUD,NZD/Flows and Orders/FXWW News/JPY crosses

AUD/JPY higher in early Tokyo

AUD/JPY is +0.3% in early trade and bottom-pickers will be hoping that previous resistance levels at 89.00/30 can be surmounted and put a base in place above the 86.25 Fibo.

I’m staying fairly neutral on this cross in the short-term, but longer-term I think we are trading at quite ‘cheap’ levels.

Sorry for sounding like a broken record, but I think this AUD short-covering story could become a big one in the next week or so.

  1. GM Sean

    I’ve chickened out of my A/U & A/J trades this morning with a +6% gain for this week.

    I think I used 12.5% (?) of my margin for this trade so whilst its good result from a logical trade entry, but the risk:reward maybe not so optimal and trade exit not optimal as well…Either way, I’m off on holidays next week so I’m tapping out, I’ve had enough. Have a great weekend!

  2. Hi Sean, I’m long A/U at 0.9. Saw your target for this bounce to be 0.93. If the short covering is really massive, do you think we will get to 95/96 from here? Else will bail out at 93 if we get there. Thanks

  3. Hi Pete, downtrend has been v strong so I don’t think we can go up 500/600 pips in straight line. Therefore best to sell into 93 rally and then look to rebuy on deep dips?

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