Yen crosses are generally following treasury yields higher today. While USD/JPY is extending recent up trend and is set to take on 110 handle, some attention would also be on commodity Yen crosses.
AUD/JPY’s corrective pull back from 85.43 should have completed at 82.27 already, with strong break of 4 hour 55 EMA. Retest of 85.34 could be seen as the current rebound extends. But we’d be cautious on strong resistance from there to limit upside, at the first attempt. Price actions from 85.43 could be a near term corrective pattern with at least one more down leg. But even in that case, strong support should be seen from 38.2% retracement of 73.13 to 85.43 at 80.73 to contain downside. Sustained break of 85.43 would resume whole up trend form 59.89.
NZD/JPY’s picture is similar. Corrective pull back from 79.12 should have completed at 75.61. Stronger rebound could be seen back to retest 79.19/12 resistance. Yet, the corrective pattern might still extend with another falling leg, to take on 38.2% retracement of 68.86 to 79.12 at 75.20, before completion. Though, firm break of 79.12 will resume larger up trend form 59.49.
