Price action on the daily chart for Aussie/Yen (AUD/JPY) is showing that the key breakout above the psychological 100 level is showing no signs of slowing down.
BIG MOVE
After respecting the 50-day simple moving average which is around the 97.45 at the start of the month, the bullish acceleration has taken price to its highest level since July of 2008.
BE PREPARED
While the move is strong and potentially shows no immediate signs of an immediate correction, traders need to be prepared for the first round of major profit taking. Any pullback may seriously be bought into and traders may prefer to scale into positions.
LOOKING AHEAD
We look to continue to ride this steep uptrend channel originating from last June. In order to for bullish momentum to trigger another bullish run, price would need to takeout the 104.50 barrier.
Eventually we anticipate more of range trading scenario for AUD/JPY, but the current momentum may persist a little longer. Key longer term resistance will be the top of the 108 level. Major support currently resides around the 102 level followed by the psychological 100 region.
