- AUD/JPY are testing a critical level of resistance in the highs on the hourly chart.
- Despite covid risks, AUD is firm in the opening session at daily support vs the greenback.
AUD/JPY is holding up at the start of the week following turbulent time over the remaining sessions of last week pertaining to the spike in risk-off as a consequence of the new coronavirus variant that is potentially resistant to current vaccines.
The Aussie took a battering last week on the back of both a hawkish set of Fed minutes and the worries of the implications of coronavirus within thin market conditions around the US Thanksgiving holidays. AUD/USD fell to a long-term support zone near 0.7110 and the yen benefitted from the risk-off flows sending AUD/JPY to the lowest levels since October. However, we are seeing a correction in the moves across the forex space and the cross is higher by some 0.67% so far.
AUD/JPY daily chart
AUD/JPY 4-hour chart
From a 4-hour perspective, the price is headed into an area of resistance where the typical Fibonacci retracements can be found between 81.50 and near to 82 the figure. Beyond there, the price could be hard-pressed and bears will be lurking to take advantage of a discount considering the risk-off themes.
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.