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AUD/JPY testing 81.00 as Yen gains on souring risk appetite

5/30/2018, 10:50:40 AMMarket Analysis
AUD/JPY testing 81.00 as Yen gains on souring risk appetite

The AUD/JPY is heading lower once again in early Asia trading, falling back into the 81.00 region as risk aversion picks up the pace for Wednesday.

The Aussie fell against the Japanese Yen on Tuesday as risk appetite retreats in the broader markets, and the drop looks set to continue into today as the pair struggles to put in a floor above the 81.00 major level. 

Japan's Retail figures came in mixed, with Large Retailer's sales coming in at -0.8%, a slightly deeper contraction than the expected -0.5%, while overall Retail Trade for the yearly period into April came in at 1.6%, a better figure than the forecast 1%.

Australian Building Permits for April, dropping at 01:30 GMT, are forecast to contract by -3% compared to the previous 2.6%.

AUD/JPY levels to watch

With the pair teasing into 81.00 in the early Wednesday session, bearish moves are continuing to gain strength while bullish attempts to correct the action are faltering. Today's drop punches in a new two-month low for the pair, and the next major support target will be March's low at 80.50, while a meaningful long-term bullish turnaround will first have to break through 82.35 and 84.45, the 38.2 and 61.8 Fibo retracement levels, respectively