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1 Nov 2013
Flash: AUD/JPY faces risk of a slump towards 91.05 and 89.95 - ANZ
FXstreet.com (Barcelona) - On the back of a topside failure at 95.90-95 (50% of the slide seen since April), Tim Riddell, Head of FX Research at ANZ, thinks the rebound seen over the past two months has run its course.
Key Quotes
"Although a genuine outside-day did not occur, the turn from the retest of the 95.60’s is indicative of a change in trend. The current testing of rising trend support (at 93.25) highlights the risk of a slump towards the relatively deep support zone between 91.05 and 89.95 (50% to 61.8% of recent rebounds)."
"It should be stressed that the trend line has not yet been broken. Interim rebounds appear likely, but a close above 94.70 is needed to reduce the current bias for retracements into mid-November."
Key Quotes
"Although a genuine outside-day did not occur, the turn from the retest of the 95.60’s is indicative of a change in trend. The current testing of rising trend support (at 93.25) highlights the risk of a slump towards the relatively deep support zone between 91.05 and 89.95 (50% to 61.8% of recent rebounds)."
"It should be stressed that the trend line has not yet been broken. Interim rebounds appear likely, but a close above 94.70 is needed to reduce the current bias for retracements into mid-November."