- AUD/JPY is currently trading at 76.64 between a range of 76.63/75 in a quiet start out for the last session of the week in Asia.
- All attention is surrounding Sino/US trade talks where China’s Vice Premier Liu has arrived in Washington to sit down with Trump&Co. before additional tariffs are due to kick in before this weekend on Chinese imports imposed in retaliation to China supposedly backtracking on prior agreements.
AUD/JPY is one to keep an eye on and technicals planned out as we wait for headlines with respect to trade talks between the U.S. and China which has kicked off today. The cross is under pressure but holding its own at the moment, tucked in just above the 8th and overnight’s double bottom lows having picked up a bid while flows out of the greenback which helped the commodity currency along.
- Wall Street supported on Trump’s optimism, but DJIA dropped below 61.8% Fibo
AUD/USD was rallying back towards the 0.70 handle vs the dollar overnight while there were some headlines coming through pertaining to the mood around pending talks in Washington that helped risk to recover slightly, if only momentarily. The mood has helped to bolster USD/JPY a touch to even the cross’s trajectory out a little and were supporting U.S. yields off their lows along with the stock market.
“Trump noted that he had received a “beautiful letter” from Xi and that the two may speak on the phone,” analysts at ANZ Bank explained, adding, “Tariffs on US imports of USD200bn of Chinese goods were due to rise from 10% to 25% imminently, but Trump noted that a deal this week is still possible. We’ll find out shortly whether these words turn into tangible results.”
AUD/JPY levels
Bears break down the 38.2% Fibo and prior recent lows and target the Ichimoku cloud bottom / 4th Jan lows confluence on a test of the 50% Fibo target at 75.80-ish. The double bottom has so far held up and stochastics are the hurdle for the bears and lean bullish. On the upside, the channel resistance will guard a run back to the bottom of the cloud that will then act as a resistance where it meets the 23.6% Fibo.
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