AUD/JPY is taking a nosedive in early Tokyo, losing over 30/35 pips from a NY close of 84.68 to currently having lost the 84.50 mid round number to set a new low of 84.35, with the pressure still coming strong amid risk-off flows.
Commodities, equities tumble
Another key contributing factor hammering the Australian Dollar against the Yen, other than the fall in equities, Nikkei is now down 0.74%, has been the collapse in commodity prices, in what may be perceived as a much-needed correction after overstretched bullish moves following the FOMC dovish outcome from last week. The weakness in the offshore Yuan in the last few days has also been a ajo driver against the Australian Dollar.
AUD/JPY key levels
Sellers are approaching a key macro level at 84.00/84.20, where persistent rebounds have been seen during the past 2 weeks. Only a close below this area may allow bears to set their sight in lower levels towards 83.50, 83.30 (today’s 14 atr) and 83.00. On the upside, any recovery in the Australian Dollar should be accompanied by a pick up in sentiment in the commodity complex should the Aussie regain back short term control. Technically, as long as the 85.00 handle is protected, bears maintain the upper hand.
(Market News Provided by FXstreet)