AUD/JPY: breakout of 94.30 on daily may allow 95.00 jackpot

FXstreet.com (Barcelona) - AUD/JPY retained its bullish momentum in early Tokyo, with the rate expanding higher towards 94.50 only to face with some heavy offers - mainly driven by retracement on the Nikkei - which has cost the pair a pullback in the tune of 20 pips to session lows of 94.35, yet the sense is that this market has now shifted into 'buy dips' mode.

AUD/JPY sees risks of bullish extension

The latest spike has tested the 200 day MA in early Asia, with the prospects for further upside resolutions in the session ahead looking bright as no much resistance observed near term, thus potential for rally to test 50% fib of 105.50-86.00 at 95.9.

Watch for AUD/JPY stops

Traders should note the AUD/USD is currently faced with the 50-day MA just below 0.9450, which if combined with the key 200-day MA on the AUD/JPY, it suggests market might be aiming to trip stops orders placed above these key levels.