Is AUD/JPY signalling risk-off ahead?

Omkar Godbole FXStreet Contributor

AUD/JPY, which is widely considered as a risk barometer, fell to 82.23 in Asia; the lowest level since May 18.

A better-than-expected Australia building consent data failed to lift the pair.

Broad based Yen strength

The Japanese Yen is ruling the roost this Tuesday morning after Greece hinted at a default and Japan’s Yamaguchi squashed hopes of a major change in the BOJ monetary policy.

The major portion of the losses in the AUD/JPY was triggered by Yamaguchi’s comments. Consequently, the drop in the cross does not necessarily signal risk-off.

Nevertheless, caution is advised as the haven demand for the Yen may strengthen in Europe if the Greek bond yields spike.

AUD/JPY Technical Levels

The cross was last seen trading around 82.35 levels. A break below 81.82 (Apr 12 low) would expose support at 81.49 (Apr 19 low) and 81.00 (zero levels). On the other hand, resistance is seen at 82.84 (200-DMA), which, if breached, could yield a re-test of 83.48 (50-DMA) and 83.88 (May 25 high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Low
1H	Strongly Bearish	Oversold	High
4H	Bearish	Neutral	Low
1D	Bearish	Neutral	Expanding
1W	Bearish	Neutral	High
Updated May 29, 18:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD sits at two-month lows near 0.6950 after Australian CPI data

AUD/USD is sitting at two-month lows near 0.6950 in the Asian session on Wednesday, as below-expectations August Australian underlying CPI data pours cold water on expectations for further RBA interest rate hikes. Chinese PMI data also fail to inspire the Australian Dollar, despite a pause in the US Dollar advance.

USD/JPY stays weak below 157.00 amid Japanese intervention risks

USD/JPY keeps losses below 157.00 in the Asian session on Wednesday, as hawkish BoJ expectations, along with intervention risks, underpin the Japanese Yen, countering dismal domestic factory output and retail sales data. Meanwhile, a broad US Dollar retreat also collaborates to the pair's downside.

Gold meets resistance just above $4,200

Gold now makes a U-turn and recedes toward the $4,150 region per troy ounce on Wednesday. Indeed, the precious metal fades the earlier move past the key $4,200 yardstick and retreats marginally as the US Dollar trims part of its daily losses amid mixed US Treasury yields.

Crypto Today: Bitcoin holds $83K as Ethereum remains below $2,700 and XRP consolidates

Bitcoin trades lethargically on Wednesday, with bulls battling to defend the immediate $83,000 level as immediate support. Ethereum trades in tandem with Bitcoin, holding below key levels of $2,700 on the upside and $2,600 on the downside. Ripple, meanwhile, hovers near $1.50,

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025, but a fresh inflation shock in the Eurozone could give the Euro an unexpected lifeline. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025, but a fresh inflation shock in the Eurozone could give the Euro (EUR) an unexpected lifeline. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082.