AUSSIE-YEN: AUD/JPY swung both ways today tracking...>

AUSSIE-YEN: AUD/JPY swung both ways today tracking the ebb-and-flow in appetite

for riskier currencies. A poor reading of Australia's completed construction

work for Q4 (the first of GDP partials for that quarter) came and went,

overshadowed by broader risk themes. Notable selling pressure came only on the

back of South Korea's coronavirus update, which saw the number of confirmed

cases swell past 1,000. Subsequent recovery in sentiment allowed the pair to

rear its head as JPY fell to the bottom of the G10 pile. There was little in the

way of potential headline catalysts, but markets may have found some reprieve in

the fact that China's deaths from Covid-19 have been confined to Hubei.

- With AUD/JPY changing hands +21 pips at Y72.97, the next layer of resistance

is provided by the 23.6% retracement of the Dec 27 - Feb 3 sell-off at Y73.39. A

move above there would open up the 38.2% retracement of aforesaid range,

intersecting at the psychological Y74.00 level. On the flip side, bears need a

drop below the key Feb 3 low of Y72.42 before focusing on the Oct 2 low of

Y71.74.