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(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

AUSSIE-YEN: AUD/JPY kicked off on the front foot yesterday, extending its recent
gains amid the growing perception that the spread of the novel coronavirus might
be contained & its economic fallout - mitigated. Participants assessed the
(downplayed by WHO) reports on progress in research into a coronavirus vaccine &
welcomed China's decision to reduce punitive tariffs on some imports from the
U.S. That being said, the rate staged a corrective pullback at slipped into
negative territory eventually, finishing a handful of pips lower on the day.
- The rate trades -11 pips at Y73.92. Bears look for a deeper sell-off, possibly
through the 50% retracement of the Aug 26 - Dec 27 rally at Y73.26. A fall below
there would bring the Feb 3 low of Y72.42 into view. Bulls need a jump above the
100-/200-DMAs at Y74.33/41 to regain some impetus.
- Some Japanese data was released earlier today. The earnings figures were
roughly in line with exp., while household spending fell more than projected.
- The focus turns to the RBA's most recent SoMP, due at the bottom of the hour.
MNI London Bureau | +44 203-865-3806 |
MNI London Bureau | +44 203-865-3806 |