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Lucas: Still scope for Aussie Yen
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Steve Lucas is trading AUDJPY amid a lot of 'will they, won't they' speculation around the Reserve Bank of Australia's monetary policy. While many traders expect the RBA to devalue the Aussie there are now signs that the bank may not be as keen as thought.
Steve expects a day of consolidation to be a signal across the board that any moves have now stalled following yesterday’s action, dominated by GBP, AUD and to some extent EURUSD strength.
Steve says: "We intend to keep it tight, but at a push we are looking at AUDJPY. A strong rally yesterday has stalled at the 200 day average rate. This level is attracting modest selling in Asia this morning and, although there is no clear reversal pattern, signals are weakening.
Call – Sell at market with a stop loss at 95.59, the 200 day average.
Targets: 94.48, just above yesterday’s Marabuzo line, 94.02, the 100 day average and 93.58, a 50% pullback to the gains since last week’s low.