AUD/JPY off 1 cent from highs, risk aversion full steam

By FXStreet FXStreet (Bali) – AUD/JPY has been hammered almost 1 cent from today’s Asian high, last at 85.20 session lows after being paid as high as 86.11 during early Tokyo.

Risk aversion is back

Uncertainty about the Fed monetary policy outcome later this week, coupled with an aggressive round of selling in the Shanghai Composite, down 3.2% at the lunch break, with the Shenzen index falling further by -4.5%, has also dragged with it the Nikkei 225, down 1.3%.

AUD/JPY levels

On the downside, 85.00 round number is the next target for sellers, followed by 84.80 (Friday’s low) and 84.50 (intraday level). On the upside,supply should be found in shallow bounces given the increase in volume seen on the move down, with sellers now in need to protect 85.60 to maintain the technical advantage heading into Europe and then US.
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Source:: FX Street