AUD/JPY: Further Upside for Risk Assets?
This week has kicked off light in regards to data/calendar wise but volatility has been high as politics and trade deals surround the markets. Risk was high as we opened the week, China said they are willing to negotiate on a few points that really matter to the US. However, USA said they are not willing to go there for a “partial deal” and wanted a “big deal”, something China wasn’t willing to do. This was quickly followed by USA putting 28 Chinese firms to a trade blacklist and Chinese officials dialling back their comments from the day before…keeping up? Good.
Talks are supposed to go ahead Thursday but in all honesty, how can they be civil when all of the above happened just days before the meeting?
So to the charts, this all boils down to risk and as you guys know, I like to look at AUD/JPY as a great barometer of this. Rejecting nicely off the 72.50 resistance level on the daily and weekly time-frames gives me a bearish view, add in all of the negative comments above and this puts AUD/JPY into a nice short position back down to its next support level at 70.50 on the daily timeframe.