AUD/JPY downside risks prevail below 100 DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/JPY remains in a wave of supply on the back of risk-off markets at the start of the year. The cross is a good barometer of risk, and while there is plenty of uncertainty the downside is usually favored.

    The US dollar and China should be the main focus and the greenback will garner demand on a positive jobs number this week, anything over 200k. The Aussie will be under pressure until sentiment flips. China will remain a concern and Global uncertainties will continue to support the Yen.

    AUD/JPY levels

    Technically, the 100 DMA at 86.87 was taken out and the downside has accumulated over 600 pips in a month in the supply that was commencing 3rd Dec. The 85.50 uptrend has also been taken out. This all brings in last summer's lows of 82.82 to the picture. On a rebound, 87.80 is first key resistance meeting the 20 DMA at 87.49.
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