AUD/JPY fell to a two-week low of 81.56 today, tracking the risk aversion in the equity markets. What else does the 19 March AUDJPY Technical Analysis discuss?
19 March, GKFX – As of writing, the S&P 500 futures are down 8 points or 0.30 percent. Also, stocks in Australia and New Zealand are down 0.20 percent each. Consequently, the Japanese Yen has picked up a bid. The pair fell 2.6 percent last week and will likely extend losses on trade fears and risk aversion.
Fed rate expectations
Meanwhile, the Aussie dollar finds no takers on speculation the Fed would be revising higher its dot plot to four 2018 rate hikes at the forthcoming meeting. Also, trade war fears are keeping the Aussie dollar on the back foot.
Thus, AUD/JPY looks set to take out the support at 81.37 (50% Fib R of June 2016 low – September 2017 high).
19 March AUDJPY Technical Analysis
A break below 81.37 (50% Fib R) would open doors for a drop to 80.00 (psychological level) and 79.21 (January 2016 low). On the higher side, breach of resistance at 81.75 (June 2017 low) would expose 82.00 (zero levels) and 82.24 (descending 4-hour 5-MA).
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