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14 Jan 2015
AUD/JPY with potential for 91.80/00 - Westpac
FXStreet (Bali) - David Coloretti, FX Technical Analyst at Westpac, notes that AUD/JPY shows a bearish stance, with a decline towards 91.80/00 possibly in store in the coming 4-6 weeks.
Key Quotes
AUDJPY has declined approximately 7% since peaking in November at 102.84. The 2014 top was confirmed by a bearish monthly reversal candle in December, as it was at previous tops above 102 in 2008 and 2013."
"The 2014 top was accompanied by a negative LT momentum shift. Note that the 5 previous negative LT momentum shifts, since 2008, have pre-empted a material decline (minimum 16%)."
"This bearish backdrop highlights a minimum decline towards 91.80/00 in the coming 4-6 weeks. A weekly close below 95.85 is the next bearish trigger to watch."
Key Quotes
AUDJPY has declined approximately 7% since peaking in November at 102.84. The 2014 top was confirmed by a bearish monthly reversal candle in December, as it was at previous tops above 102 in 2008 and 2013."
"The 2014 top was accompanied by a negative LT momentum shift. Note that the 5 previous negative LT momentum shifts, since 2008, have pre-empted a material decline (minimum 16%)."
"This bearish backdrop highlights a minimum decline towards 91.80/00 in the coming 4-6 weeks. A weekly close below 95.85 is the next bearish trigger to watch."