AUD/JPY: trade war risk just elevated knocking the wind out of the Aussie
|- AUD/JPY is chopping its way back to the downside after the symmetrical triangle's, (ST), break with the price now clustered around the recent trend line support of between early Sep's lows and the 25th Oct low ST lows.
- AUD/JPY is pressured as risk sours on Wall Street courtesy of the latest trade war headlines.
- AUD/JPY is currently trading at 79.27 from a high of 79.76 scoring a low of 79.10 as the yen caught a broad-based risk-off bid.
AUD/JPY bears have been in control with rallies faded while price trades below the 200 4hr & 1hr SMAs as the price chops its way out of the ST to the downside. The latest news that the markets have reacted to flows a period of silence in the rade war front as we lead up to the G20 and next possible summit between Trump and Xi on the 26th Nov in Buenos Aires.
Today, it was reported that the U.S. is preparing to announce by early December tariffs on all remaining Chinese imports if talks next month between the presidents fail to ease the trade war. This rattled Wall Street that had started out well in a bullish correction. All three benchmarks are a sea of red - S&P 500 - 0.66%, NASDAQ -1.63% and the DJIA -0.99%. AUD/USD had a rough ride on this while USD/JPY actually remained relatively firm as the dollar takes the news in its stride looking solid above 96.50 and the 21-hr SMA still. Looking ahead, Chinese PMI and Aussie CPI could be the nail in the coffin for the Aussie.
AUD/JPY levels
AUD/JPY is on the verge of breaking away from the 4hr 21 SMA with eyes on S1 78.75 with MACD turning less positive on the 4hr sticks although the daily points to a period of consolidation around the pivot. RSI is neutral. A break of S1 opens S2 at 78.16 and 77.75 as S3. To the upside, R3 is located at 80.76 guarding the 200-D SMA at 82.36.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.