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JPY: Erases Gains

AUD

AUD/JPY had a look above yesterday's high, carried by continued optimism surrounding the beginning of formal U.S. transition & Chinese Premier Li's remarks that China's growth will return to a proper range next year. The pair topped out at Y77.05 and pulled back, giving away virtually all of its earlier gains. It last trades at Y76.84, little changed on the day.

  • The rate has struggled to retest this month's high (Y77.10) after forming a tweezer bottom pattern as it bounced off its 50-DMA at the tail end of last week. Subsequent move higher has stalled ahead of the aforementioned Nov 11 high of Y77.10 & 76.4% recovery of the Aug 31 - Oct 29 slide at Y77.10/21. A breach of these levels would open up Sep 10 high of Y77.74. Conversely, a break under Nov 19 & 20 lows/50-DMA at Y75.41/35 would support the bearish case.

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