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  • AUD/JPY: headed tot he 100-D SMA at 84.21 as bears attack the yen.
  • AUD/JPY: USD/JPY bulls target 111.50 barrier level, AUD/JPY RSI supports bullish targets.

AUD/JPY is hanging in on the 84 handle having made a high of 84.17 and a low of 83.34, with bulls fuelled by risk-on demand and an unwinding of the risk otherwise posed by trade wars between China and the US.  

US Tsy Sec. Mnuchin: meaningful progress was made in the latest China trade talks

AUD/JPY, the FX-space’s risk barometer, has rallied from this month from 81.13 double bottoms in tandem with the Aussie that battled hard from 0.7412 lows. It has not all been one-way traffic for the Aussie with the ebbs and flows of traffic associated with the various geopolitical risks that the EMs and the Aussie as a proxy have been subject to.  

Positive trade  headlines supporting risk

In vogue today are the comments from US Treasury Secretary Steven Mnuchin. Speaking to CNBC this Monday, Mnuchin was noted saying that meaningful progress was made in the latest China trade talks. This follows the weekend’s headlines that kicked off the risk-on tone for the start of the week where trade wars between the US and China have been put “on hold”.  

Global equities have started out the week higher and the yen, as a result, has been shelved, with USD/JPY attacking through the 200-D SMA at 110.19 and bulls targeting the 111.50 barrier level, up to a high of 111.39 so far. AUD/JPY is on the verge of a break of the descending 100-D SMA at 84.21.

AUD/JPY levels

The aforementioned 100-D SMA guards 84.35, 85.50 and the 200-D SMA at 85.65 opens 86.20. RSI heads towards 70, still with room to go supporting the bullish bias. To the downside, 83.32 guards 83 the figure before a breakdown to 82.40, (50-D SMA).