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AUD/JPY catching some lift as the Yen takes a break

3/28/2018, 10:05:03 AMMarket Analysis
AUD/JPY catching some lift as the Yen takes a break

The AUD/JPY is recovering in Tokyo trading as the Yen recedes, testing near 81.15 in the early Asia market.

The Aussie tumbled against the Yen as risk aversion returned in force on Tuesday, but the Yen halted its march and the AUD was able to put in a floor near 80.85 after hitting the overnight session. 

Risk aversion ends the early week's rally in short order

Risk appetite that kickstarted the week has evaporated once more as fears of a trade war and inflation risks from the US came crashing back home, and most of the week's early gains have been erased.

A lack of data is the hallmark of the week heading into Easter weekend, though the USD will be seeing US GDP and Personal Expenditure figures at 12:30 GMT later today. GDP is expected to print at 2.7% versus the previous 2.6%, and traders will be watching the release closely as fears of inflation roaring back into the market are hanging just beneath the surface, and a significant uptick in growth could spook markets.

AUD/JPY Levels to watch

The Aussie has been softening against the Yen steadily in 2018, and the pair is trading into a 14-month bottom, with support thin at today's low of 80.84 and last week's major bottom at 80.50, while resistance piles in at yesterday's high of 81.90 and last week's swing high point of 82.40.