AUD/JPY Faces Double Whammy Amid Risk-Off
AUD/JPY fell
back in the red and now extends further south during mid-Asia, as
risk-off induced yen strength adds to the poor sentiment seen around the
AUD/USD and weighs down on the cross.
AUD/JPY recovers from 79.30 levels
The AUD/JPY pair now drops -0.45% to 79.50, recovering slightly from
fresh session lows struck at 79.31 earlier today. The cross is seen
attempting a minor-bounce, although remains heavily offered as it faces
double whammy from renewed sell-off in the AUD/USD pair on one hand,
while the yen regains control versus its American counterpart, which
also added to the losses in AUD/JPY.
The underlying risk-off tone in the markets continue to have significant
negative effect on the risk barometer, AUD/JPY, as sharp declines in
the Asian stocks combined with sliding oil prices crush appetite for
risk. Next on the focus remains the US data flow, which is expected to
provide fresh direction on both the JPY and AUD.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 79.79/80 (5-DMA/ round
number) and above which it could extend gains to at 80.67/81 (May 11
High/ daily R2).To the downside immediate support might be located 78.95
(daily S2) below that at 78.14 (multi-week low).
