Friday’s are often risk-off trading days in Asia, but it would take a brave trader to go short AUD/JPY after it has now closed above previously strong resistance at 96.40. On the other hand, both AUD/USD and USD/JPY have flattered to deceive in recent times, threatening to break out of ranges only to slide back in again.

I’d suggest some patience here this morning, but if we do get some volatility in the cross, I quite like the idea of selling rallies towards 97.30/40 in expectation of a swift 100 pip turnaround.