Japanese Yen’s decline continued in today’s Asian session, with USD/JPY breaching 160 mark amid notable absence of comments from Japanese officials, as the country is on holiday. While some profit-taking has occurred due to concerns in guard of intervention, traders seem poised to push the pair beyond 160 if Japan remains inactive.
Simultaneously, Australian Dollar rises broadly, supported by ongoing rebound in Hong Kong stocks and growing domestic debates over whether RBA should implement another rate hike. With the current interest rate at 4.35%, some analysts believe it may not be sufficient to adequately address inflationary pressures.
AUD/JPY is currently the top mover for April, up more than 5.7%. Technically, a focus now is whether 100% projection of 86.04 to 97.66 from 93.00 at 104.62 would cap upside in the near term. Break of 102.98 support will suggest that near term consolidation has started. Nevertheless, decisive break of 104.62 will pave the way to 138.2% projection at 109.05.
In the long term picture, momentum in AUD/JPY remains strong as seen in M MACD. The strong break of trend line resistance is another bullish sign. AUD/JPY might be ready to break out of from range through 107.88 (2007 high) to 61.8% projection of 59.85 to 99.32 from 86.04 at 110.43.
