AUDJPY Fundamental Outlook


A look at the 23 March AUDJPY Fundamental Outlook shows that the pair was sent packing at the 82 handle in European trade having failed at 82.57 yesterday. The cross has since delved deeper into the 80 handle on the back of trade war angst, supported by 80.49.

23 March, GKFX – Overnight, besides raising a WTO case and the implementation investment restrictions, Trump was announcing a raft of new tariffs aimed directly at China.

The tariffs are to the tune of roughly USD60bn worth of Chinese imports to the US, will target the aerospace, information and communication technology, and machinery space at 25%.  These will be implemented on the premise that American intellectual property (IP) needs protecting from China’s state-led and market-distorting efforts to steal US tech and IP.

Trump is irresponsible to risk trade ties

Tariffs will target the aerospace, information and communication technology, and machinery space at 25%. China had said they will respond with ‘measured and proportional’ levies on the US, saying that Trump was irresponsible to risk trade ties.

The yen picked up the bid again when China confirmed that it is planning tariffs on US steel, aluminum products, saying earlier that it is not afraid of a trade war and will defend its interests.

23 March AUDJPY Fundamental Outlook

AUD/JPY has broken below the  81.50 support and 81.20, then 81.00 and has made a low of 80.50. 81.50 was a key resistance back in July 2016 and there is little in the way of support from here to 79.20.

The weekly indicators are highly bearish with Momentum the strongest it has been for the year and as RSI heads for a test below 30 again, (daily sticks RSI also tracing 30). 82.30 is a key resistance to the upside in line with the 82.40 10-D SMA.

Disclaimer

This article 23 March AUDJPY Fundamental Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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