AUD/JPY keeps on moving higher

I’m still convinced this is a silly ‘start of year’ move with the Yen leg driven by what is in essence verbal intervention and the AUD leg moving higher on ephemeral ‘risk-on’ sentiment which is well and good until it turns. Nevertheless, the market is always right, so I’ll stay out of the way until the move gets ultra silly!

The levels to watch for are 88.50 in USD/JPY, where optionality is touted, and 1.0590 in AUD/USD, where stops are seen; both levels should prove magnetic. This should keep the market busy pre-ECB.