AUD/JPY Dumped 1 Big Figure Amid Oil Driven-Risk-Off
The offered tone around the AUD/JPY cross
weakened a bit in the mid-Asian session, allowing a tepid-bounce to 83
handle, only to find fresh at the last and now consolidates around
AUD/JPY sees 120-pips bearish gap opening
The AUD/JPY pair now drops -1.45% to 82.81, recovering slightly from fresh four-day lows struck at 82.47 in early trades. The cross was heavily sold-off into widespread risk aversion after the oil prices collapsed as the weekend’s Doha oil producers’ meeting failed to reach an agreement on oil putout freeze plans.
The Japanese currency extended its Friday’s rally against the Aussie this Monday, as investors flocked to safe-havens such as the yen on oil sell-off induced flight to safety. While the AUD/USD pair also nursed severe losses on the back of almost non-existent demand for higher-yielding currencies.
Nothing of note in terms of economic news in the day ahead, and hence, the oil price action will continue to drive the cross ahead of RBA’s monetary policy meeting minutes due for release tomorrow.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 83.46/47 (5-DMA/ daily R2) and above which it could extend gains to at 84/84.04 (100-DMA).To the downside immediate support might be located 82.47 (daily low) below that at 82/81.81 (round number/ Apr 12 Low).