Both AUD/JPY and NZD/JPY ride on broad based weakness in Yen and surge strongly this week. More important, both have breached key long term resistance levels.
As for AUD/JPY, there might be some initial rejection by 90.29 resistance. But near term outlook will stay bullish as long as 85.78 resistance turned support holds. Next medium term target is 61.8% projection of 59.85 to 85.78 from 78.77 at 94.79.
More importantly, AUD/JPY’s rise from 59.85 should be reversing the whole down trend from 105.42 (2013 high), which has completed in a three wave structure. Firm break of 94.79 would set the stage for 100% projection at 104.70, which is close the top of a two decade range at 105.42/107.88.
Similarly, NZD/JPY also breaks 83.90 resistance. Near term outlook will stay bullish as long as 80.17 resistance turned support holds. Next medium term target is 61.8% projection of 59.49 to 80.17 from 75.22 at 88.00.
Sustained break of 88.00 will pave the way to 100% projection at 95.90, which is also at the top of two decade range at 94.01/87.74.
