AUD/JPY on the bottom after risk-off week

Risk aversion punished the Aussie and pumped up the Yen last week.
Continued scandal through the weekend leaves Monday at risk for further declines.

The AUD/JPY is trading on the low side after tumbling on risk aversion, and the new week sees the pair trading near a one year low and is testing 81.75.

The Aussie tumbled 3.4% against the Yen last week as risk aversion wipes out risk assets and continues to pump up the Yen. Trump's administrative staff continue to cycle out at a record pace as the president turns cold on his own staff picks, and the White House's ability to operate smoothly in the future is being called into question. Adding to the risk-off mood in markets is the Japanese land sale scandal, and responders to a Japanese media poll strongly suggest that the general public holds the Japanese Prime Minister, Shinzo Abe, personally responsible for the cronyism scandal.

The macro calendar is slim for the early week, with the AUD underrepresented until the Reserve Bank of Australia's (RBA) Meeting Minutes on Tuesday at 01:30 GMT. On the JPY side will be Import and Export data alongside the Merchandise Trade Balance figure at 23:50 GMT today. followed by the Leading Economic Indicator early Tuesday at 05:00 GMT.

AUD/JPY Technicals

The pair collapsed in spectacular fashion as risk aversion kicked the Aussie even lower and sent the Yen back up the charts, and the correction in the AUD/JPY ended with a neat bounce off the 34 EMA at 84.52, and the pair is approaching the one year low of 81.47. Intraday support is thin at Friday's low of 81.68, with resistance sitting at early March's S/R line of 82.50.

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.