AUD/JPY on the bottom after risk-off week
|- Risk aversion punished the Aussie and pumped up the Yen last week.
- Continued scandal through the weekend leaves Monday at risk for further declines.
The AUD/JPY is trading on the low side after tumbling on risk aversion, and the new week sees the pair trading near a one year low and is testing 81.75.
The Aussie tumbled 3.4% against the Yen last week as risk aversion wipes out risk assets and continues to pump up the Yen. Trump's administrative staff continue to cycle out at a record pace as the president turns cold on his own staff picks, and the White House's ability to operate smoothly in the future is being called into question. Adding to the risk-off mood in markets is the Japanese land sale scandal, and responders to a Japanese media poll strongly suggest that the general public holds the Japanese Prime Minister, Shinzo Abe, personally responsible for the cronyism scandal.
The macro calendar is slim for the early week, with the AUD underrepresented until the Reserve Bank of Australia's (RBA) Meeting Minutes on Tuesday at 01:30 GMT. On the JPY side will be Import and Export data alongside the Merchandise Trade Balance figure at 23:50 GMT today. followed by the Leading Economic Indicator early Tuesday at 05:00 GMT.
AUD/JPY Technicals
The pair collapsed in spectacular fashion as risk aversion kicked the Aussie even lower and sent the Yen back up the charts, and the correction in the AUD/JPY ended with a neat bounce off the 34 EMA at 84.52, and the pair is approaching the one year low of 81.47. Intraday support is thin at Friday's low of 81.68, with resistance sitting at early March's S/R line of 82.50.
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