/YEN: Losing Ground

Continued pressure to U.S. equity index futures has generated risk-off flows across G10 FX space, pushing AUD/JPY (a known risk barometer) lower. The sell-off accelerated upon the breach of yesterday's low and the pair extended losses past the Y77.00 mark, printing its worst levels in a week. Although a subsequent bounce off lows took the rate back above the aforementioned round figure, it continues to operate at depressed levels. AUD/JPY sits at Y77.03, 21 pips worse off as we type.

• Bearish focus falls on the 50-DMA, which kicks in at Y75.78. A break below that level would clear the way to the key Aug 24 low of Y75.45. Bulls look for a recoil, which would take the rate above Aug 31 high of Y78.46, the best level since mid-2019. A clearance of that figure is needed to give bulls a fresh impetus.
• Australian retail sales take focus from here.