AUD/JPY unperturbed by Syria strikes, continuing to push towards 84.00

  • The Aussie is catching some bids and the Yen is remaining notably risk-off following a tense weekend of missile strikes and political rhetoric.
  • Markets have shrugged off Syria actions after a week of buildup.

The AUD/JPY is lifting in the new week, trading into 83.60 following a tense week of political standoffs that culminated in a missile strike on Syrian forces over the weekend.

Risk tone: well, so far so good, just another attack on Syria, market moves on . . .

As FXStreet's own Ross Burland noted, "there were three targets hit over the weekend, in a decision lead by the US president, Donald Trump, with backing from the UK and France. However, the move has proved globally divisive. Many have condemned the move as provocative and unacceptable and one may have thought that the week would have kicked off with gaps on the charts. The consequences of such action, are of course widespread on the geopolitical front. The main focus there was whether or not Russia would respond vocally and provocatively, but so far there seems to be very little to concern us, and instead, markets have digested it and moved on, (too much time has passed and it was a one-off strike). 

The Aussie sees only low-tier Vehicle Sales figures on Monday, and the important macro news will be the Reserve Bank of Australia's (RBA) Meeting Minutes publishing early on Tuesday at 01:30 GMT.On the Yen side, nothing of material importance to markets will be dropping until the Merchandise Trade Balance figures drop late Tuesday at 23:50 GMT.

AUD/JPY Levels to watch

Markets are looking bid heading into the new week and the challenge for Aussie bulls will be to carry the pair over Friday's high at 84.07, while the 200-day SMA sits overhead at 86.30 but turning bearish, while support will be provided by last week's swing lows, at 82.70 and the 82.00 major level.

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