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AUD/JPY selling hard in early Tokyo, multi-month trendline at peril

FXStreet (Bali) - AUD/JPY is breaking lower at the open of Tokyo, with the Nikkei tracking te sour sentiment seen in European/US stock by falling 1.4% in the early going, allowing the Yen to strengthen across the board.

The Australian Dollar, in turn, has been trading on the back-foot, with US traders selling the currency hard on the back of a downbeat Aus jobs report on Thursday, which combined with the latest news out of China, where the government has re-introduced coal levies - set to hit Australian miners the hardest - is not helping to lift the mood towards holding Aussie Dollars ahead of the weekend.

Technically, the rapid depreciation of the pair in recent weeks is leading to the breakout of an ascending trendline - connecting May/Aug valleys -, a bearish development if bears manage to end the week below the level. On the topside, expect 95. round number to contain recoveries, while on the downside, 94.00 is the next target where sellers are expected to take profits off the table.

USD/JPY static on BOJ same-same but, same

USD/JPY is trading at 107.87, up 0.05% on the day, having posted a daily high at 108.00 and low at 107.80.
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