AUD/JPY: Bears gearing up for a test of hourly 200-SMA?

AUD/JPY remains heavily offered as risk-off intensifies amid falling stocks and negative oil prices, now pushing the rate towards NY low reached at 85.30 levels.

AUD/JPY: Yen rebounds across the board

The AUD/JPY pair now drops -0.44% to 85.48, meandering near session troughs struck at 85.38. The sell-off in AUD/JPY is mainly driven by ongoing weakness seen in USD/JPY, as the sentiment towards the greenback turns sour in wake of a non-event Trump news conference and falling treasury yields.

However, the losses appear capped amid strong gains witnessed in AUD/USD, which partly helps stalled the retreat in the cross from three-week tops. Attention now turns towards the Chinese trade figures and US retail sales data due tomorrow. Meanwhile, the US jobs data and Fed speaks will also garner some attention in the NA session today.

Technical Levels

Higher side: 86 (zero figure), 87.17 (Dec 16 high)

Lower side: 85.17 (1h 200-SMA/ previous low), 84.57 (50-DMA)