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AUD/JPY: Bulls regain control, 102.00 next resistance

FXStreet (Bali) - AUD/JPY continues to pivot near trend highs, with Monday's losses being slowly but firmly erased, as the rate settles comfortably above 101.50/60 once again, en-route to 102.00 ahead of 102.40.

While the 10 big figures move off 92.00 last month to levels beyond 102.00 has reached 'parabolic status', suggesting that when a reversal comes, it may be a nasty one, market conditions don't seem to suggest that the Yen is going to enjoy much buying interest in the near term as Japan delays a second consumption tax hike and a snap election is called, both outcomes perceived as Yen negative given the increased possibility of further expansionary BoJ policies to stimulate an economy stuck in recession. Of more immediate focus though, and a potential mover for the pair later today will be RBA's Governor Stevens speech, scheduled at 8.25 GMT, with comments in connection with the AUD value the main theme to watch for.

Technically, AUD/JPY's setback off 102.00+ levels carved out a base along 101.30/40 (50-hourly EMA) on Monday, with bulls re-taking control above the 20-hourly 20-EMA, which shifts the focus for a retest of 102.00 ahead of 102.40, immediate resistances. On the downside, there is plenty of work to be done if sellers aim to take short term control, with layers of strong demand touted at 101.30, 101.00 and 100.80. Only below the latter, a deeper fall aiming for 100.00 may be expected.

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