Big sell-off in Asia: Aussie big loser, Yen through the roof

By FXStreet FXStreet (Bali) – A new wave of Yen buying amid risk-off conditions has taken USD/JPY into fresh lows at 119.54, with 120.00 stops being tripped, also rumours of AUD/JPY stops out of the way, as well as AUD/USD below 0.6980.

Big intraday levels broken

The snowballing effects has taken the USD/JPY to break 120.00, with no immediate support now until 119.30, which allows for continued offers to encounter limited buying interest. AUD/USD also broke through stops below 0.6980, printing its lowest at 0.6960. AUD/JPY has printed new weekly lows at 83.30 ahead of 82.50 recent trend low.

Risk aversion dominant, technical suggest more to come…

As explained earlier, when risk aversion dynamics settle in without any particular trigger – as is the case today -, it will strengthen the case for risk premiums to be paid expensive and the risk-off/volatility conditions to be perceived as the possible ‘new normal’. Besides, technicals in Yen and Aussie crosses have been damaged significantly, even EUR/JPY is now teetering in the brink of collapse sub 133.00.
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Source:: FX Street