Tuesday, October 20, 2009

AUDJPY: Market Call

The AUDJPY has done a whole lot of nothing for the last few days.

Can you blame it? It must be tired after the recent climb.

More seriously, with the RBA considering whether to raise rates another 25 or perhaps even 50 basis points, I don't expect any type of calamitous drop.

I think we might see a drop down to 83.00 again but if it does stop in that region I'd consider the range between there and 84.30 to be a consolidation zone. Again, given the interest rate decision in the near term future I'd eventually expect more upward movement as long as there is not an RBA based negative surprise.

Your mileage may vary.

UPDATE: Wednesday after 10:00am, we have an apparent AUDJPY breakout... currently at 84.50 and testing the underside of our previous support channel. I'm hoping that we reject 84.50 a few times before crossing -- as that will help my trading robot better take advantage of the movement.

See what I'm talking about? You can go back through a few previous posts to get a wider view of recent events.

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