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AUD/JPY: Traders preapre for wild intraday swings

FXStreet (Bali) - AUD/JPY continues to make new 15-month highs, with the pair being paid as high as 97.65 in Asia, as the market continues to factor in a more aggressive reallocation of assets by Japan's GPIF as well as increased expectations of BoJ easing.

The pair should see some wild intraday swings today, with Australian Q2 GDP, RBA Steven's speech to the Committee for Economic Development of Australia (CEDA), and the decision to reshuffle the Japanese cabinet, expected at 14pm local time, with all the attention on who will be named as next Minister of Health, Welfare, and Labor, with reports suggesting Deputy Policy Chief of the LDP, Mr. Shiozaki, who has been championing a GPIF shift towards riskier assets.

From an order flow point of view, 97.50 should see the first area of supportive bids in a retracement lower, with further buying interest expected in sequences of 5/10 pips down to 97.25-30 ( breakout point Sept 1). On the way up, a key fibonacci retrac at 98.15 should now be targeted.

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