Chart of the Week April 6th
AUDJPY -Breaking one of the last barriers to 104.50
After two major attempts since Oct. 09’, the AUDJPY has broken the 61.8% fib of the 08’ highs at 104.45 to the 09’ lows 54.92 at 85.63. It closed last week 16pips from the weekly high (87.05) to finish strong. This strong close along with it being the largest weekly gain from open to close in 2010 suggest this break is for real and the pair is headed for higher ground as the bulls never took profits going into the holiday close.
There are two decent resistance levels above at 88.11 weekly low from March 21st last year and 89.98 which was the weekly low from Jan. 25th of 09’. Beyond that we only have the big figures of 95.00, 100.00 and 104.45 which was the high for 09’.
Being that we are close to the 61.8% fib and high from this year (86.20) we have strong support below and plenty of upside. Combine this with the likely strong Tenkan / Kijun bullish cross on the weekly chart and we are likely headed for a very large move. The last weekly Tenkan / Kijun cross was a weak one and it moved well over 1000pips. Should the pair clear the first two resistance levels, we feel there is a very strong chance of it hitting 100.00 and 104.45 which are 1300 and 1745pips away.
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