AUD/JPY erodes over 200 pips, weakest since Oct 2012

By FXStreet FXStreet (Mumbai) – The AUD/JPY battering continues full-fledged this session as the sharp sell-off in AUD/USD leads to more 2-big figures drop.

AUD/JPY: Sell-off in copper and oil – main catalyst

Currently, the AUD/JPY pair sinks -2% to 80.81, retreating slightly from fresh multi-year lows struck at 80.57. The AUD/JPY cross remains heavily sold-off into deteriorating risk conditions mainly driven by a sharp sell-off in the oil and copper prices, hurting the resource-linked Australian dollar terribly. AUD/USD collapsed to fresh seven-year lows of 0.6872 last minutes.

Moreover, a stronger yen against the greenback on rising demand for safe-havens in times of market unrest and turmoil, further adds to the sell-off in AUD/JPY. AUD/JPY acts as a risk-barometer, now tracking the weakness across the financial markets.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 82.21/43 (daily pivot/ 10-DMA) and above which it could extend gains to 81.97 (5-DMA). To the downside immediate support might be located 80.57 (daily low) below that at 80.00 (Oct 2012 L0w).
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Source:: FX Street