AUD/JPY downside risks prevail below 100 DMA

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.

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, but it is not hard to see where all this is headed.

(Market News Provided by FXstreet)