AUDJPY Reversing Heavily
AUDJPY has undergone a sharp shift in sentiment over recent weeks. Following the breakout to fresh 2022 highs in mid-September, the pair has now collapsed and traded down from around 98.80s to 92.20s currently. The reversal comes amidst a heavy wave of risk aversion sweeping across markets which is fuelling safe-haven demand for JPY and seeing risk-linked FX recoil quickly. The pair hjas now broken below the local rising trend line and latest structural support at the 92.66 level. While below here, bears can stay short for 90.52 initially and 88.02 thereafter. The retail market is heavily buying the pair, suggesting plenty of room for a further drop.
Keep an Eye On
The current market backdrop of risk off trading is what is driving this sell off. With USD breaking fresh highs, bond yields soaring and JPY soaking up safe-haven demand, the stage is set for further losses. Consequently, traders should look to stay short while the dynamic continues, managing risk if we see any shift in this narrative. Another round of Fed speakers today (including Powell) likely to drive USD further higher.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.