- AUD/JPY has been in a downtrend since the 8th Nov highs up at 83.05 where the price reached a low of 81.20 where the Sido-US trade dispute remains a heavyweight on markets ahead of the G20 summit on the 26th Nov.
- AUD/JPY has been quiet in holiday markets but remains as a key barometer of risk appetite that is somewhat more elevated towards the end of this week with the price recovering from 81.40 lows to a high of 82.26.
AUD/JPY is quiet at the end of the week with US markets closed overnight and will only reopen for half a day on Friday. However, stocks were lower in European trade and US futures were printing fresh lows, leaving the scope for AUD/JPY to rally into the weekend limited.
Focus on Brexit
The focus was on European markets where EU and UK negotiators completed amendments to the initial draft withdrawal agreement faster than expected. “Although Spain voiced concerns over Gibraltar, EU spokesmen stated that there would be an additional document to cover Gibraltar and fishing rights (French concerns) so that the EU leaders can meet on Sunday to support the withdrawal agreement. UK PM May also stated that she and Spanish PM Sanchez had reached agreement,” analysts at Westpac explained.
AUD/JPY levels
RSI and MACD are neutral although the price is supported by the 21-D SMA while sitting above the descending support line, within a bullish territory. The upside targets come as R2 82.42 and R3 82.65. 83.05 is the 7th Nov high, a double top area, which if broken, opens the path to Feb lows at 83.28. To the downside, 79.90 is a key weekly support level.
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