Forex Flash: AUD/JPY maintains 1-month target at 100.00 on BoJ – Westpac

FXstreet.com (Barcelona) - Risks still seem firmly skewed to the downside in AUD/JPY multi-week though markets should at least wait to see what BoJ governor Kuroda will deliver at his first meeting. Indeed, “the 100 area is likely to remain difficult near-term while 97.00 provides support. Our one-month target however is 95-100, mostly driven by profit taking on long USD/JPY positions.” notes Sean Callow, a Global FX Strategist at Westpac.

The AUD/JPY has left behind all major moving averages. “The narrow failure to break 100.00 on 14 March suggests this will take some work to break near term, though we doubt there would be significant options-related defense.” Callow adds. The pair has not traded below 97.00 over the past two weeks, providing a potential short-term range of 97-100.