AUD/JPY: Trade idea for contrarian hard-asses only
A Yen analyst out of Tokyo, for whom I have a lot of respect, is calling an end to the Yen fall saying that the BOJ independence will eventually outweigh any government promises. Domestic Australian data has been very poor but this is being ignored as risk sentiment remains exuberantly high to start 2013. Technically, AUD/USD should struggle ahead of 1.07, USD/JPY has its Fibo target at 88.95 and the AUD/JPY cross has its channel top near 94.00.
Very risky I know but I’m on the lookout for any exhaustive spikes in AUD/JPY and I will look to sell for a return to more ‘normal’ levels near 84.00.