The Australian dollar has been on a roll but seems to lose some ground. It is now approaching an interesting technical level. Also dollar/yen has its technical characteristics.
Here is the view from JP Morgan:
Here is their view, courtesy of eFXnews:
The overall range bias continues in USD/JPY, notes JP Morgan.
“Again, the key levels remain well-defined especially given last week’s effective test and reversal from the 118.65 support area. Again, this area should continue to hold to maintain the potential for a deeper short term recovery.
The upside focus stays on the 121.00/80 area with breaks necessary to allow for an extension into the 123/124 zone (Cwave).
Alternately, a failure to hold the 118.65 support would allow for a closer test of the medium term range lows in the 116.00/50 zone,” JPM projects.
Turning to AUD/USD, JPM notes that the short term advance continues to develop with an impulsive bias while raising the risk that a deeper retracement is underway.
“The focus is now on the critical .7380/.7440 zone which includes the August peak and the 38.2% retracement from the May high. Upside breaks would target the .7600 area.
A break below the .7135/00 area would be the first sign that this corrective phase is starting to falter and potential bearishly shift,” JPM adds.
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