Wed, Feb 01, 2023 @ 18:21 GMT
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AUD/JPY and CAD/JPY downside breakout after BoJ surprise

Yen surges broadly today after BoJ surprisingly raise 10-year yield cap from 0.25% to 0.50%. AUD/JPY finally breaks through 90.81 support decisively to resume the decline from 99.32. The strong break of a near term channel also indicates downside acceleration. Next near term target is 100% projection of 99.32 to 90.81 from 95.73 at 87.22

From a longer term point of view, the break of 55 week EMA and the channel support also affirms the case that AUD/JPY is corrective whole up trend from 2020 low at 59.85. Such decline from 99.32 would target 38.2% retracement of 59.85 to 99.32 at 84.24 before forming a bottom.

CAD/JPY also broke out of a near term expanding triangle to resume the whole fall from 110.87. Near term target of 200% projection of 110.87 to 104.55 from 110.33 at 97.69 is already met. Such decline is seen the correcting the up trend from 2020 low at 73.80. The question now is whether support from 38.2% retracement of 73.80 to 110.87 at 96.70 is strong enough to contain downside. If now, CAD/JPY accelerate further to 261.8% projection at 93.78.

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