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AUD/JPY hammered through 89 amid falling stocks

FXStreet (Mumbai) - The Japanese yen battered its Australian counterpart in the European morning, smashing AUD/JPY to fresh lows below 89 handle.

AUD/JPY breaks key support at 20-DMA (88.96)

Currently, the AUD/JPY pair drops -0.90% to near weekly lows of 88.85, having failed to resist 89 barrier. AUD/JPY faced double whammy this Tuesday, with the Aussie heavily offered on dismal China trade data. The Chinese exports declined for the 5th straight month, coming at -3.7% against a -0.29% drop expected. Imports continued its slide and fell over 8% last month.

Whilst rising demand for the yen on the back of persisting risk-off trades amid falling equities and oil prices, exacerbates the pain in the cross. Moreover, better than expected Japan’s GDP data also keeps the sentiment around the yen buoyed.

In the day ahead, the cross will continue to track the broader market sentiment and remain pressured due to reduced appetite for riskier assets.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 89.49/65 (10-SMA/ daily high) and above which it could extend gains to 90.27 (200-DMA). To the downside immediate support might be located 88.31 (Nov 26 low) below that at 88 (Nov 30 low).

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