AUD/JPY climbing higher toward initial resistance located above 98.00

After trading as low as 97.22 earlier in the session, the Aussie/Yen is now climbing higher in Asia up 88 pips at 98.10. Economic releases during the session will be light with no major reports on the calendar.

According to Tim Riddell, Head of Global Markets Research at ANZ The break of 99.30 duly triggered a flush to the ‘buy zone’ (retracement, previous high/lows). A secondary slip into this 95.50-97.00 area could still occur, but could complete corrections and be followed by rebounds to retest the interim 102.25-45 high. The style of rebounds will determine whether the uptrend has resumed for a push through 105.45 to test 2007’s 107.85 high.

The FXStreet.com Trend Index remains Slightly Bearish on the daily chart, while the OB/OS Index reads Oversold. Short term moving averages on the daily chart remain bearish, with price below both the downward sloping 9 and 20 dma’s. First resistance sits at 98.22 (the 100dma), followed by 99.29 (the 9dma). Initial support sits at 97.66 (the 50dma on 1 hour chart), followed by 96.96 (low of previous day).