AUDJPY Drops to Lowest Level


AUDJPY dropped to lowest level, signaling the risk sentiment is worsening on escalating trade tensions. However, is there room for a further drop in the JPY cross? What does the 14-day relative strength index (RSI) shows?

7 September, OctaFX The AUDJPY pair fell to 79.06 a few minutes ago – the lowest level since November 2016 and was last seen trading at 79.22.

AUDJPY Drops to Lowest Level

The sell-off is likely associated with the escalating US-China trade tensions and could be considered a sign of impending risk aversion in the global equities as the JPY cross is widely considered a risk barometer.

More importantly, the 14-day RSI is holding a few points above 30.00, meaning the pair could extend the decline further, albeit after a brief bear breather as the RSI on the hourly chart is reporting oversold conditions.

That said, a strong corrective rally could be seen if the US delays the fresh round of tariffs on Chinese goods.

AUDJPY Technical Levels

Resistance: 79.52 (Sep. 3 low), 79.70 (Aug. 15 low), 80.00 (psychological resistance)

Support: 79.26 (76.4% Fib R of 72.44/90.30), 79.00 (psychological support), 78.18 (Apr. 2016 low)

Disclaimer

This article about AUDJPY Drops to Lowest Level was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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