Free Trial

AUD/JPY Off 4% From Cycle High Amid Signs of Life in the VIX

AUD
  • AUDJPY remains under considerable pressure, extending the current losing streak to five consecutive sessions - the longest losing streak since September last year. This puts the pullback from the June cycle high (itself a bearish harami candle pattern) at over 4%.
  • The pullback is now within range of key support at the 50-dma at 93.44 - last crossed in early May and looks partially corrective - unwinding the overbought condition that set in after the early June rally. Weakness through the 50-dma exposes 93.24 retracement support initially, ahead of 91.87, the 50% retracement of the recovery off the March low.
  • Over the past few years, the cross has been closely tied to risk/equity volatility and market turns (early March SVB crisis, Sept BoJ intervention) via the VIX Index, which has ticked higher from the post-COVID lows printed in late June. Further equity volatility gains could spell further weakness in AUD/JPY. This brings tomorrow's US CPI report and the late July BoJ decision into the spotlight ahead.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.