AUD/JPY: Still prefer to sell rallies for test of 70
My overall big-picture view remains the same. The USD will weaken and I’m looking for good medium-term entry levels back into long AUD/USD and long cable positions. My shorter-term view is a bit different and I expect some noisy sideways markets just like we have seen in the last week or so.
We’ve just seen AUD/JPY shorts get squeezed and technical stops above 74.60 were triggered. The big levels seem pretty clear here, with big figures at 70-77 providing support and resistance. I prefer to look for exhaustive spikes to re-launch shorts for a final test lower.
I’m a bit annoyed that I missed the buying opportunity in cable near 1.2450 but I expect to get more chances. I’m hoping to build an aggressive long position for a move into the high 1.30s.
AUD/USD should be s/t toppy near .71c and support should be powerful on dips to .67c. Range trading advised until the noise is over.
Ergo, trade of the moment, sell USD/JPY rallies for a move towards 102 in coming weeks.