AUD/JPY downside bias on strong yen

By FXStreet AUD/JPY is drifting to the downside since breaking below the 20 and 50 hourly smas while the price has otherwise been consolidating the downside from the 84.00 sell-off.

The Yen is however still the top performer across the board and made some further headway overnight vs the greenback. USD/JPY scored below 114.00 and followed through cautiously to current levels with a low of 113.34.

Yellen did little to rescue the greenback on her wait and see rhetoric while remaining cautiously optimistic vs question over negative rates and US possibly entering a recession from congress.

Today, China is still out, but HK returns. However, regardless of whether China is at play, investors remain extremely risk averse and the Yen may continue to rise under its safe haven status, despite how the BoJ tried it on with the recent moves at the end of last week. we will await consumer inflation expectations from Australia today and RBA’s Sevens tomorrow when he testifies.

AUD/JPY levels

Technically, AUD/JPY is trading with a bearish bias below the aforementioned sma’s on the hourly chart, below the pivot of 81.17 with S1 at 80.22 and S2 at 79.06 while S3 is located at 78.11. Hourly RSI (14) is …read more

Source:: FX Street