 Dollar rises against Yen after release of slightly better than expected ISM manufacturing data. But there is no clear pick up in buying against other major currencies. Weakness in Yen remains in the main theme. Overall trading is relatively subdued today, with most markets closed on holiday. But volatility will certain come back with lots of heavy weight events scheduled, including three central bank meetings in RBA, Fed and ECB. Australian Dollar recovers broadly today as traders await tomorrow's RBA rate decision. Technically, the turnaround in AUD/JPY in the last two days was very impressive. The break of 90.76 resistance, as well as channel resistance, now argues that whole correction from 99.32 has completed with three waves down to 86.04. Further rally is now expected as long as 55 D EMA (now at 89.76) holds. Break of 92.99 structural resistance will be a strong bullish sign. Let's see if RBA could give the cross a hand. |
