The USDJPY may breakout of the downward trending channel from the end of March as market participants see the Bank of Japan taking additional steps to shore up the ailing economy, but we may see the low-yielding currency continue to appreciate against its U.S. counterpart should the central bank revert back to a wait-and-see approach. At the same time, we sold the AUDNZD at 1.2970 as it fails to test the 50.0% Fibonacci retracement around 1.3050, and the pair looks poised for a sharp reversal as the relative strength index threatens the upward trend from back in April.
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