The Australian dollar has charged up the charts and has certainly caught many by surprise given the recent bullish statements from the Reserve Bank of Australia which bodes well for the AUDUSD on the charts. Certainly the boost in oil prices and equity spreads has helped the market and risk appetite is on the increase, what is also important to note is the current view from the governor of the RBA, which is that oil prices being this low are good for the economy in the long run. The rise in the AUD will not have gone unnoticed from the RBA, and in this case I would not be surprised to hear some jaw boning from the RBA in the long run if we see any further rapid rises on the charts.

Looking at the charts it's clear that there is a bullish trend line in motion here and each wave is looking stronger and stronger. Resistance for the AUDUSD looks to be centred around the 0.7558 and has been very strong so far in holding back markets, despite the pressure. Support can also be found at 0.7421 and it's likely the market may look to bounce back from this key level before running any higher as buyers will be looking to unwind positions at present after a week of heavy buying pressure.

The Bank of Japan will also be one of the major contenders to watch in the market today as the USDJPY continues to falter on resistance even after the Core Machinery Orders m/m came in strong at 15.0% (2.5% exp). Now this reading was not the main headline but certainly had markets more interested in the Yen than usual and today will be no different as Governor Kuroda is to give a press conference and stress the need to lower deposit rates even further. It sometimes feel that the world has gone a little crazy with the push to go lower, but such is the need in Japan to help boost its inflation rate that it comes at all costs scenario.

On the charts is where the USDJPY is starting to look very interesting as it hugs tightly to resistance at 114.030 and is looking more and more likely to break out. The 20 day moving average could be key here as traders look to ride it out of the current tight band that is building around resistance at 114.030. The next level up from here is likely to be found at 114.965 and 115.955, but the market will need either jaw boning from the Bank of Japan or alternatively strong bullish movements in the USD.

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