1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

AUD/JPY keeps falling on RBA, risk-off, near 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Mumbai) - The AUD/JPY cross is seen facing double whammy so far this Tuesday as the dovish shift by the RBA combined with the oil-led risk-off weighs heavily on the Aussie.

    AUD/JPY retreats from lows ahead of 85 handle

    Currently, the AUD/JPY pair drops nearly 1% at 85.25, recovering from a brief dip to almost 85 handle. The Australian dollar remains heavily offered against its Japanese counterpart, especially after the RBA cast doubts over the global economic growth in wake of the recent financial markets turmoil and left doors open for further policy easing.

    Moreover, the strengthening yen against the greenback as risk-off sentiment heightened on the back of extension of the losses in oil and the European stocks. Hence, investors sought to safe-havens such as the yen, which dragged the AUD/JPY cross to a new 2-day low.

    Looking ahead, the week holds plenty of risk events for the cross, in terms of the Australian trade figures, retail sales and RBA monetary policy statement. While the most influential US NFP report is also due on Friday, which may have major influence on the cross.

    AUD/JPY Technical Levels


    To the upside, the next resistance is located at 86.14/22 (daily high/ Feb 1 High) and above which it could extend gains to 87 (round number). To the downside immediate support might be located 84.84/82 (1h 100-SMA/ daily S2) below that at 84.16 (10-DMA).
    For more information, read our latest forex news.
     

Share This Page