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Equity and cryptocurrency routs support the yen and are more susceptible to the AUD

Australian dollar, AUD / JPY analysis

  • JPY Bid for higher risk crypto and stock sale
  • Downward revisions to global growth (mainly China) AUD
  • key AUD / JPY Technical level

Yen bidding as a stock sale

The yen has witnessed a temporary rise as risk sentiments consistent with stocks and cryptocurrencies are hit.The recent altcoin rout from tether’s pegging has spilled over into the stable coin market. Bitcoin When Ethereum I would like sympathy. The Bank of Japan is firmly committed to accommodative monetary policy, although warnings of accelerated inflation and worsening household income are likely to challenge the Bank of Japan authorities in the coming months.

Meanwhile, the Australian dollar has fallen sharply from its April highs as macroeconomic conditions move away from strong global demand, especially strong commodity demand from China. The AUD continues to fall despite a hawkish message from Reserve Bank Governor Rowe that multiple rate hikes are planned after raising 25 basis points in early May.

AUD / JPY Key Technical Analysis

Whenever the market moves from one environment to another, it’s best to zoom out and identify key support and resistance from the beginning. The Australian dollar was the beloved currency of the global recovery as commodity prices soared with global demand (mainly from China).

The situation has changed dramatically as Australia’s major trading partner, China, has reintroduced blockades in major cities to promote the Zero-COVID policy. An unwanted by-product of the blockade is reduced economic activity, which also exacerbates the shortage of existing supply chains and delays in transportation.

The monthly chart shows that the three monthly candlesticks are roughly similar. Evening Venus It’s a candlestick pattern, but it’s difficult to make it a solid case because the extended top core complicates the problem. Nevertheless, the message is the same. The market tried to push it up, but in the end it couldn’t hold up and was much lower. Since then, the pair has moved down considerably and needs to take a closer look at the daily chart.

AUD / JPY Monthly Chart

Source: TradingView, prepared by Richard Snow

Daily chart Shows a significant decline in today’s trading sessions, breaking the 90.50 level of resistance. Today’s lower closings marked six consecutive loss trading sessions, suggesting that the current leg of bearish movements may be due to minor retracements in future sessions. I am. The RSI is approaching the oversold territory, this time as a resistance, supporting the possibility of rising towards the 90.50 zone.

Bears may be aiming for a bounce from the 90.50 level in bearish continuation play, as the fundamentals appear to support the bearish AUD / JPY move. Support will be provided at 85.30, which is certainly quite far from the current price. Resistance at 90.50 remains a higher future level test of the pair.

AUD / JPY daily chart

AUD / JPY Price Outlook: Equity and cryptocurrency routs support the yen and are more susceptible to the AUD

Source: TradingView, prepared by Richard Snow

— Written by Richard Snow for DailyFX.com

Contact Richard on Twitter to follow us. @RichardSnowFX



Equity and cryptocurrency routs support the yen and are more susceptible to the AUD

Source link Equity and cryptocurrency routs support the yen and are more susceptible to the AUD

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