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AUDJPY gains on BOJ Stimulus Bets

by on January 25, 2013 6:35 am GMT
 

Australia’s dollar rose 0.2 percent to 94.56 yen as of 4:42 p.m. in Sydney. It fell as low as $1.0439, the weakest since Jan. 4, before trading unchanged at $1.0451 on speculation pressure will increase on the Bank of Japan (8301) to expand stimulus after core consumer prices in the nation declined last month.

“We should see more yen weakness, and Aussie-yen as a consequence is beginning to perform quite well,” said Jim Vrondas, the chief currency and payments strategist, Asia- Pacific, at OzForex Ltd. in Sydney. “The market is quite confident that the new regime in Japan, for the time being at least, is going to deliver on what they’re saying in a somewhat aggressive way,” he said referring to Liberal Democratic Party’s return to power after elections last month.

The so-called Aussie may climb toward 100 yen and New Zealand’s dollar may advance to 80 yen over the first quarter, Vrondas said.

Pivot Woodie Fibonacci
Resistance 3 96.88 97.1 95.8
Resistance 2 95.8 95.91 95.15
Resistance 1 95.18 95.4 94.75
Pivot 94.1 94.21 94.1
Support 1 93.48 93.7 93.45
Support 2 92.4 92.51 93.05
Support 3 91.78 92 92.4