FXStreet (Guatemala) – AUD/JPY is bid, albeit still below the bearish gap, currently trading at 92.11 with a high of 92.16 and a low of 90.94.
AUD/JPY has drawn traders attention given the impressive recovery it has made since the bearish opening gap post the Greek referendum results.
AUD/JPY price action
AUD/JPY is currently a handful of pips shy of the opening bearish gap that hit 91.14 on the early open in Asia and has been recovering steadily ever since. On the hourly sticks we have been making steady higher lows until 92.11 with 92.16 being the gaps origin. Else where, the bearish gaps across the board on the back of the Greek referendum’s results have some recovery space to go yet, which takes us to Gold and a look at the commodity currencies which are all in recovery mode vs the greenback and the euro while USD/JPY’s performance is lagging the cross.
AUD/JPY fundamentals
Aside from Greece, AUD/JPY has seen some early yet third tier Aussie inflationary data while Kuroda has hit the wires and was repeating QQE will remain in place for however long it is needed. In respect of the Greek referendum results, it was a resounding NO and now we are in to Yen favourable territory within uncertain times ahead. The Strategy/Economic Team at TDS analyzes what is needed to move forward the Greek situation and said, “The Greek Government must say what it wants.”
For the Yen, support will play out all the while that there are concerns of a Grexit. Germany’s economic minister, seeing it as Tsipras leading Greece down the path of hopelessness. This could play out for some time yet, as analysts at Dr Jörg Krämewe, Chief economist at Commerzbank explained. “It will then be difficult for the ECB to completely end the ELA loans, meaning that Grexit will not happen immediately.”
Meanwhile, a European summit has been confirmed and is to take place on July 7th as Merkel and French president, Hollande have voicved there empathy to the public of Greece’s decision. Greek Finance Minister Yanis Varoufakis, when responding to the Greek referendum, has called it, “a big yes to a democratic Europe”.
AUD/JPY technically en route for Jan 2015 lows
AUD/JPY is technically bearish, while we make our way through the supporting levels with 92.67 July lows off the table, and the new lows at 90.94 bid leaving the 0.92 vulnerable for continued and repeat offers at the figure while en route for 89.27 and jan 2015 lows.
(Market News Provided by FXstreet)