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JPY Rising on Safe-Haven Demand
The Japanese Yen has emerged as the strongest currency in the G10 space on Monday. The backdrop of global risk aversion linked to concerns for the banking sector is fuelling a fresh surge of demand for the safe-haven Yen. News over the weekend that UBS will purchase troubled Swiss lender Credit Suisse is the main story for markets. However, far from reassuring investors and turning markets higher, the news seems to have exacerbated current uncertainty as traders wait to see how US-listed banks open today. With the Fed on deck this week, the prospect of further tightening is also hanging over markets with risks of another leg lower in risk assets likely to keep JPY supported through the week.
AUD on The Backfoot
AUD has been among the weakest currencies over early European trading on Monday. The weak risk backdrop and a stronger USD Dollar is leaning on AUD here. The currency has been hard hit over recent days and looks vulnerable to further downside near-term with the Fed due later this week. Retail market is currently heavily long the pair (around 75%), opening the way for a further push lower if current themes continue.
Technical Views
AUDJPY
The pair is currently sitting on support at the 87.32 level which has underpinned the market in recent days, trading within a bear channel. With retail heavily long and momentum studies still bearish, risks are pointed in favour of a break of current lows and a move down towards 85.98 and 84.15 below.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.