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AUD/JPY: Bullish outside day, key breakout

FXStreet (Bali) - AUD/JPY printed a bullish outside day after recovering off a minor setback post FOMC, gaining over 70 pips or 0.76% for the day, reinforcing the bullish bias amid an improved risk environment.

A cluster of bids around the 50-dma at 95.40 in the last Asian session allowed the rate to carve out an intraday bottom, with Europe/US traders taking the pair for a ride higher towards 96.60 highs later on the day; the pair recorded its 9th day of gains out of the last 10, the best barometer reflecting how much risk has improved ever since the slide seen in mid October. Talk of an aggressive GPIF asset reallocation - via Nikkei - assisted the rally.

Technically, the close above the 96.10/30 region - key resistance - is a bullish technical development implying further upward momentum likely towards next daily target at 97.00/97.30 - psychological level, 78.6 fib retrac - ahead of 98.80 recent Sept highs. Any setback should see support and buyers layered circa 96.00, with the protection of the level important to keep the bullish momentum intact. Nikkei performance today and BoJ/Kuroda press conference later on the day, will be the key movers in Asia.

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