AUD/JPY has been hammered since news came out, via FT, that BoE's Weale now favours immediate stimulus. While the headline may not have a direct effect on the pair, it triggered a major sell-off in the Sterling, which has also led to relentless strength in the Japanese Yen with the Nikkei 225 selling-off, reinforcing the 'risk-off' conditions, which has acted as a standalone negative input for the Aussie.
'Risk off' conditions all around
At present, the Nikkei 225 is being severely punished, last at 16,449.00, down 1.03%, with Gold spiking higher and the 30-year US Treasury bonds well bid as the sudden turn on risk conditions causes market participants to seek the protection of safe-haven assets. Note, the next big mover for the pair, outside 'risk on/off' conditions, will be Australia's CPI Q2 report on Wednesday, followed by the BOJ monetary policy decision on Friday.
AUD/JPY key levels for today
Technically, AUD/JPY faces its first level of support at 78.50 (current day low), followed by 78.00 round number, 77.50 ahead of 77.30 macro support. On the upside, as long as 79.00 is not re-taken, the inertia should be for the trend to remain bearish in the sessions to come. Should 79.00 be reclaimed, then ext levels of resistance shold be found at mid and round numbers 79.50 and 80.00.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.