- 10-D SMA caps bullish recovery attempts as risk-off play persists.
- USD/JPY is back of the highs and consolidating around the 200-D SMA.
UD/JPY is consolidating in a daily range of between 80.62 and 81.93 while being capped by the 10-D SMA on Wednesday at 81.64 with a low of 80.81, turning lower as Wall Street declines and index come off their highs with only the DJIA holding onto positive territory by the skin of its teeth, +0.01% at the time of writing.
Higher betas under pressure
The higher betas are struggling in this environment, as trade war angst continues to weigh on risk sentiment. The JPY was leading in the European session, although there was a temporary relief when USD/JPY jumped through the 200-D MA, sending AUD/JPY to the session highs when on CFIUS headlines where Trump was seeking to keep investment environment in US open. However, Larry Kudlow, President Trump’s chief economic adviser’s said that Trump is not retreating on China, which weighed on stocks again, especially the tech-heavy NASDAQ, -0.71% at the time of writing.
AUD/JPY levels
A break of the 81.00 handle opens 80.80 and 26th June low ahead of 19th June lows of 80.62 before a break of 80.00 will open 79.20 and 11th June lows 72.37. to the upside, the 10-W SMA at 82.45 is key. On the daily sticks, RSI is flat within neutral territory, pointing to a period of consolidation as the 10-D SMA caps.
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