- The yen is bid as US-China trade war concerns weigh over risk sentiment – S&P 500 futures are down 0.5 percent.
- AUD/JPY is reporting a 0.74 percent drop.
Currently, AUD/JPY is trading at 81.32, having clocked a high and low of 81.86 and 81.25, respectively.
The currency pair is down 0.74 percent on the day, possibly due to fears the US and China are heading for a full-blown trade war and the resulting drop in the risk assets.
Earlier today, Wall Street Journal reported that President Trump is planning to restrict many Chinese companies from investing in US technology companies. Further, plans are being drawn to block exports of “industrially significant technology” to China.
If these measures are announced, then the trade war could escalate as experts say China has the arsenal for a long drawn out trade war.
Thus, S&P 500 futures are reporting a 0.5 percent drop in Asia and the anti-risk JPY is on the offensive.
AUD/JPY Technical Levels
Resistance: 81.93 (Friday’s high), 82.11 (10-day MA), 82.66 (50-day MA).
Support: 81.00 (psychological support), 80.63 (recent low), 80.50 (March 23 low).
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