JPY Trading Outlook (26-04-2013)

CROSSES: AUD/NZD broke below former weekly lows at 1.2100 yesterday amid heavy turnover, despite the Anzac day holiday. Further losses here look very likely and the first level of resistance is the prior daily low at 1.2145 (it opens near 1.2100 this morning).

GBP/AUD has made a strong move higher overnight but it is now running into very solid technical resistance near 1.4980. A clean break above this level opens the way for quite a significant move higher (see chart).

There was some very heavy turnover yesterday in AUD/NZD and the break below a previous weekly low at 1.2100 will have the bears salivating. Nevertheless the inability to close below there does post some questions about the strength of the bearish momentum at the moment.