JPY drops sharply today as most of the imminent risks abated, temporarily, including missile strike in Syria, US-China trade war etc. Selling momentum persist as seen in both 4H and D heatmap. And the selloff is spilling over to USD too.
GBP and commodity currencies are strong with AUD/JPY and GBP/JPY topping the top movers chart for today.
For the week, CAD/JPY is the strongest one, followed by NZD/JPY and AUD/JPY but they are close.
Taking a look at AUD/JPY, it’s now targeting 84.51 near term resistance. Firm break there should be a strong sign of trend reversal. That is, the whole decline fro 90.29 has completed at 80.48. And in that case, AUD/JPY should target 89.08/90.29 resistance zone in short to medium term term.
Meanwhile, NZD/JPY has actually taken out equivalent resistance at 78.61 earlier this week. It’s also on track for 81.55/83.90 resistance zone. Comparing the two, AUD/JPY is trying to catch up. And as we mentioned in a post before, we’d still prefer NZD/JPY to AUD/JPY for long trade.
