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AUD/JPY buffeted in 1 cent range, Aso not catalyst for a resoltuion

FXStreet (Bali) - AUD/JPY has entered a period of consolidation between 102.20/25 and 101.20/30 amid an ongoing pullback from 119.00, currently at 117.50, in USD/JPY.

Today's remarks by Japanese Finance Minister Aso, noting that Yen weakening over the past week has been too rapid, is a warning sign which may disrupt the near term smooth Yen trend and make perma bears hesitant to hold positions, thus further profits taking activity may be noted heading into the weekend.

Today's comments by FinMin Aso suggests more aggressive rhetoric by officials going forward aimed at stalling the incessant yen depreciation, which became parabolic after a delay was announced to implement a second consumption tax hike, now scheduled for mid 2017. Whether or not the 'jawboning' will be effective, remains to be seen, however, what seems quite certain is that intraday traders should get prepared for wilder 2-way business.

Technically, in order to establish a new bias for the market, either 102.25/30 or 101.20 have to give in, with a topside resolution allowing an extension towards 102.50 ahead of 103.00, while on the downside, a penetration of 101.20 may see losses accelerate to test 100.75 with 100.00 in the radar next.

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