AUD/JPY fails to portray trade sentiment amid yen weakness

  • AUD/JPY stays mostly directionless after the previous day's losses.
  • Japanese yen remains on the back foot following downbeat data, comments from policymakers.
  • Coronavirus updates continue to keep the risk-tone heavy.

AUD/JPY stays mildly positive, 0.04%, to 74.18, by the press time of early Friday in Asia. The risk barometer recently lost its allure considering the Japanese yen’s broad weakness. Recently contributing to the yen’s declines could be soft data and statements from the Japanese diplomats. Even so, markets remain worried as the latest developments concerning coronavirus have been serious.

Following soft readings of Japan Consumer Price Index and Jibun Bank Manufacturing PMI, the BOJ Governor Haruhiko Kuroda and Japan’s Economy Minister Nishimura have been speaking frequently.

The BOJ leader cited coronavirus concerns as the biggest issue to be discussed at this weekend’s G20 while showing readiness to act, likely not needed now. On the other hand, the economy minister directly talked about the yen weakness and said it’s because of the US economy’s strength.

On the other hand, coronavirus updates have been worrisome as Hubei registered an increase in infections and deaths while numbers from mainland China were also increased by the end of February 20. Elsewhere, developments concerning the disease from South Korea, Japan, Sydney and Singapore are also negatively affecting the risk-tone.

That said, the US 10-year treasury yields remain on the back foot around 1.512% with the stocks in Japan erasing the early-day gains while those of China awaiting fresh clues.

Traders will now keep eyes on the coronavirus updates as well as Japan’s All Industry Activity Data for fresh impulse.

Technical Analysis

Considering the pair’s another pullback from 100/200-day SMA, the quote is likely declining towards 74.00, comprising 38.2% Fibonacci retracement of its declines from December 2019 to January 2020. On the upside, Meanwhile, a 200-day SMA level of 74.25 can act as nearby resistance ahead of the confluence of 100-day SMA and 50% Fibonacci retracement close to 74.50.

Additional important levels

Today last price 74.2
Today Daily Change 3 pips
Today Daily Change % 0.04%
Today daily open 74.17
Daily SMA20 73.68
Daily SMA50 74.8
Daily SMA100 74.47
Daily SMA200 74.27
Previous Daily High 74.43
Previous Daily Low 73.79
Previous Weekly High 74.3
Previous Weekly Low 73.06
Previous Monthly High 76.34
Previous Monthly Low 72.46
Daily Fibonacci 38.2% 74.04
Daily Fibonacci 61.8% 74.19
Daily Pivot Point S1 73.83
Daily Pivot Point S2 73.49
Daily Pivot Point S3 73.19
Daily Pivot Point R1 74.47
Daily Pivot Point R2 74.77
Daily Pivot Point R3 75.11



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