I'm watching the AUD/JPY 4-hour chart this morning. Commodities have run hard over the last few weeks, led by a resurgent oil price. Iron ore popped another 5% in the last 24 hours, and even precious metals are higher.
In my view, this commodity strength will turn in the Asia Pacific trading session today.
This is likely to weigh on the AUD. However, as this is a corrective move, there is little desire for safe haven currencies. This could see JPY give up its recent strength. And the chart is setting up nicely:
The up move could be failing below the 85.75 resistance. A cross over of the MACD, and/or a fall below 85.00, is enough for me to enter a sell trade targeting the lows around 82.50