AUD/JPY consolidated on mixed feelings surrounding Brexit
- AUD/JPY has travelled from a high of 78.51 to a low of 77.81 since yesterday's late Asian session, meeting a high of 78.31 in North American Trade, but is slipping in Tokyo as the yen flexes its muscles down to 78.12 at the time of writing.
The focus has been elsewhere, although China has been a hot topic and given the crosses close relationship to the market's risk profile, price action is relative. China was seen as a positive for once due to the supportive stimulus measures announced yesterday, sarking a rally in risk which was supportive of the pair. However, Brexit was in the mix overnight which made for some risk off play leading into the meaningful vote.
Brexit is taking the focus for now
While the vote meant that we are back to square one again, risk actually returned as that market preferred to lean on the optimistic side of the outcome, despite the heavy loss for PM May. The market is banking on prospects that PM May will now win a no-confidence vote and will be able to conjure up enough support in the Commons on a new deal following concessions from the EU on the next vote around. However, the clock is ticking and it will be a bumpy ride along the way.
- Wall Street back in the green, Tech stocks were stealing the show
- UK PM May: Tonight's vote shows nothing about what Parliament supports
- GBP/USD spikes lower to 1.2668 on leak of vote, Brexit vote confirms leak, the 'No's' have it, sterling climbs to 1.28 handle
AUD/JPY remains in consolidation around the pivot of 78.20, but the double top highs in the 78.50s and lack of bullish momentum behind the recent correction from the flash crash lows leaves the trajectory vulnerable for a test of the cluster of moving averages guarding a break down to S2 located at 77.63.