AUD/JPY: Downside Targets 2016 Lows 77.56
AUD/JPY is back on to the 80 handle with a pick-up in USD/JPY with the
cross reaching a high of 80.37 while intra-session highs were recorded
at 80.57 on the post-RBA cut, yet short-lived, re-bound.
AUD/JPY is going to be driven by demand in the Yen while markets look for safe havens, rather than a gamble for yield as concerns mount about the condition of the global economy now that the RBA has joined the party of lowering interest rates. This week's jobs data will be crucial to determine the path of the U.S. dollar that continues to struggle in this environment where the Fed's tone is less convincing.
AUD/JPY is testing the 23rd Feb lows at 79.59, having already scored below there, but a convincing close on a daily basis underpins the motive for a continuation to 77.50 and through the 10th Feb low. On a correction of the downside, only a full reversal and a break above the 200 dam at 85.52 would challenge the descending channel's resistance in the late 2014 sell-off.