FXStreet (Guatemala) – AUD/JPY has been a big loser on risk-off moods as the Yen soars and stocks to places not visited since October business.
USD/JPY took out the 120 handle overnight and has not looked back until support in the 118 handle ahead of key supporting technical levels. The Aussie was sold off after Chinese manufacturing proves to be continuing to contract and nervous markets prefer to go where the flow is going and that is south, south and south for all these units at the moment. However, the Yen cannot just keep appreciating in a straight line and there are arguments and goof fundamentals for it to correct again as 2016 gets going, explained by analysts at Nomura earlier here.
AUD/JPY levels
Technically, the 100 DMA at 86.93 was taken out and the downside has accumulated over 200 pips in the supply commencing overnight. Dec lows were penetrated and now the 85.50 uptrend also. 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 87.75.
(Market News Provided by FXstreet)