AUD/JPY downside compelling on bullish yen

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/JPY has rebounded from the lows of 77.58 and grapples with the 2016 support (now resistance) line around the mid point of the 0.79 handle.

    The Yen is relentless as investors take refuge in its safe haven status while market volatility increases as we progress through the year. Yellen has done little to support the greenback as she testifies again today saying that she wouldn't take negative rates off the table.

    USD/JPY made fresh lows at 110.97 earlier and EUR/USD is testing the key resistance and trend line having posted highs of 1.1376 so far. The S&P has also been making fresh lows at 1807.50. Gold on the verge of making a full come back for 2016 printing new highs today of $1,263.03 and oil is making fresh lows of $26.20 . Given AUD/JPY's close correlation to risk, the downside has further to go should such fundamentals persist.

    AUD/JPY levels

    Technically, AUD/JPY's lows of 77.58 holds little significance going back on the charts and while the cross trades below the 200 month sma at 81.36, the downside remains compelling towards June 2012 lows of 74.45. Daily RSI is at 35 currently.
    For more information, read our latest forex news.

Share This Page

free forex signals