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20 Feb 2014
AUD/JPY testing the downside
FXStreet (Guatemala) - AUD/JPY has dropped onto the supporting and psychological handle and the figure 92.00. The pair is oscillating between 20 pips.
While the pair is coming across with a bearish bias on the short terms, according to Sean Callow at Westpac Banking Corporation ABN, AUD/JPY risks seem tilted to the upside over the next few weeks on a more constructive AUD backdrop and broadly supportive global risk appetite. “But gains beyond 94-95 over the next month could be difficult given the weight of speculative positioning on USD/JPY and doubts over whether the Bank of Japan will deliver substantive policy change in April”.
AUD/JPY long term average
Callow noted that the AUD/JPY is very close to its long term average. “It is in very familiar territory, with the 90-100 range accounting for about 12% of trade since 1983 and 80-90 a whopping 24%. Yen weakness in the 1980s does distort the averages however. The average rate since 2000 is 80.2”.
While the pair is coming across with a bearish bias on the short terms, according to Sean Callow at Westpac Banking Corporation ABN, AUD/JPY risks seem tilted to the upside over the next few weeks on a more constructive AUD backdrop and broadly supportive global risk appetite. “But gains beyond 94-95 over the next month could be difficult given the weight of speculative positioning on USD/JPY and doubts over whether the Bank of Japan will deliver substantive policy change in April”.
AUD/JPY long term average
Callow noted that the AUD/JPY is very close to its long term average. “It is in very familiar territory, with the 90-100 range accounting for about 12% of trade since 1983 and 80-90 a whopping 24%. Yen weakness in the 1980s does distort the averages however. The average rate since 2000 is 80.2”.