AUD/JPY: Bears see the greenlight for deeper positioning


AUD/JPY has been whipsawed, printing lows down to below the 70 handle and then snapping back to a trend-line resistance and back through the 72 handle. There have been a number of inputs including sentiment around trade wars, trade negotiations between the US and Japan and monetary policy. 

The Aussie was under pressure a little overnight as traders awaited Debelle anxiously. However, RBA Deputy Governor appeared to rule out negative cash when speaking on the topic of the balance of payments.

"Dr Debelle was asked about how low-interest rates could go. His answer to us suggested the RBA will prefer to take cash to around 0.25% or even zero before explicitly looking at quantitative easing," analysts at ANZ Bank explained. 

When asked about how low-interest rates could go he said the following, according to a story from Bloomberg:

"If you look at what happened in the US, Canada and the UK, when they got down to their lows it was somewhere around zero, quarter, half a percent. And so I think that probably gives us some sort of guide as to what the equivalent might be here."

Trade wars whipsawing the Yen

On the trade war front, there is no end to the risk-on and off changes that we are experiencing on every word or tweet and headlines that seems to contract the prior. This is a new paradigm shift that markets will have to suffer, as the previous trade was to 'buy yen at all costs', but the markets have proven that such a strategy may not play out as well as it should and the yen can too be sold off in a heartbeat - The yen has been tracking stocks and it seems that while the machines are at play, the flip of sentiment from one day to the next will continue to take the yen for a rollercoaster ride. 

AUD/JPY levels

The cross is stabilising but the flood gates have been opened with the recent downside spike, clearing out stops and the less committed bulls. However, the upside targets come in on the 72 handle on a break of trendline resistance opening prospects for the 73 handle. 

AUD/JPY

Overview
Today last price 71.43
Today Daily Change -0.48
Today Daily Change % -0.67
Today daily open 71.91
 
Trends
Daily SMA20 72.22
Daily SMA50 74.13
Daily SMA100 75.63
Daily SMA200 77.44
Levels
Previous Daily High 72.08
Previous Daily Low 69.97
Previous Weekly High 72.41
Previous Weekly Low 71.03
Previous Monthly High 76.28
Previous Monthly Low 74.35
Daily Fibonacci 38.2% 71.27
Daily Fibonacci 61.8% 70.77
Daily Pivot Point S1 70.56
Daily Pivot Point S2 69.21
Daily Pivot Point S3 68.45
Daily Pivot Point R1 72.67
Daily Pivot Point R2 73.43
Daily Pivot Point R3 74.78

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Next stop emerges at 0.6580

AUD/USD: Next stop emerges at 0.6580

The downward bias around AUD/USD remained unabated for yet another day, motivating spot to flirt with the area of four-week lows well south of the key 0.6700 region.

AUD/USD News

EUR/USD looks cautious near 1.0900 ahead of key data

EUR/USD looks cautious near 1.0900 ahead of key data

The humble advance in EUR/USD was enough to partially leave behind two consecutive sessions of marked losses, although a convincing surpass of the 1.0900 barrier was still elusive.

EUR/USD News

Gold extends slide below $2,400

Gold extends slide below $2,400

Gold stays under persistent bearish pressure after breaking below the key $2,400 level and trades at its lowest level in over a week below $2,390. In the absence of fundamental drivers, technical developments seem to be causing XAU/USD to stretch lower.

Gold News

Why this week could be explosive for Ethereum

Why this week could be explosive for Ethereum

Ethereum (ETH) is down nearly 1% on Monday as exchanges have begun confirming Tuesday as the launch date for ETH ETFs. Considering the ETH ETF launch and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.

Read more

What now for the Democrats?

What now for the Democrats?

Like many, I applaud Biden’s decision.  I would have preferred that he’d made it sooner, but there’s still plenty of time for the Democrats to run a successful campaign. In fact, I wish something on the order of a two-month campaign – as opposed to a two-year campaign – were the norm and not the exception. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures