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AUD/JPY heavy buying through 87.50, double bottom?

FXstreet.com (Barcelona) – AUD/JPY has broken above the short term consolidation pattern at 87.50, leading to stops being tripped and price rallying into 87.65 offers, as the Nikkei is off to a good +0.5% start.

Early on Wednesday, with risk-off sentiment receding and the AUD/USD finding buyers sub-0.89, the AUD/JPY managed to break above the 20-hourly EMA – dynamic resistance – to then be temporarily capped by 87.50, now history as emerging buyers take advantage of a second leg higher, one that usually comes with strong momentum as sellers get taken on the wrong foot.

On the way up, the next …read more