30 Jan 2014
AUD/JPY loses 2 cents from Wed top to bottom
FXstreet.com (Bali) - AUD/JPY is trading at depressed levels below 89.50 after taking a big hit on Wed, led by the return of pressures in EMs.
Risk-off makes a comeback
The hawkish move by the Turkish central bank was interpreted as 'risk on' by Asian participants, but the ebullient mood proved short-lived, as Europe came in with the mentality of 'risk-off' on the basis that the monetary action taken by Turkey results on EMs exhausting their firepower.
AUD/JPY technicals
Technically, the daily chart shows a massive engulfing bearish bar, after sellers came in earnest to sell on this week's rally around the 50% fib retrac from the 94 - 88.50 run. The main risk is for further downside pressure, with a retest of Jan lows at 88.50 in focus. Any rebund should meet sellers camped 89.65 (intraday level) ahead of 90.00 round number.
Risk-off makes a comeback
The hawkish move by the Turkish central bank was interpreted as 'risk on' by Asian participants, but the ebullient mood proved short-lived, as Europe came in with the mentality of 'risk-off' on the basis that the monetary action taken by Turkey results on EMs exhausting their firepower.
AUD/JPY technicals
Technically, the daily chart shows a massive engulfing bearish bar, after sellers came in earnest to sell on this week's rally around the 50% fib retrac from the 94 - 88.50 run. The main risk is for further downside pressure, with a retest of Jan lows at 88.50 in focus. Any rebund should meet sellers camped 89.65 (intraday level) ahead of 90.00 round number.