FX.co ★ AUD/JPY Bullish Outlook, March 17, 2011 (Daily Strategy)

AUD/JPY

The sharp index declines seen on the world's stock markets have weighed down the Australian dollar- Japanese Yen pair, landed it straight towards the support and low level of 74.50, At these levels the pair becomes attractive for a buy deal, One can begin with a small buy even at the present price levels, it is preferable to wait for a daily close over the test level of 79.00, in order to determine with more certainty that the pair has in fact formed a bottom and it is possible indeed to enter into a buy position.

Note that should the pair in fact reverse direction and begin in a new upwards movement, it is expected to rise up to the meaningful resistance level of 83 Japanese Yen for one Australian dollar.