AUD/JPY back into the 83.00 handle as markets spook out of risk mode
- Aussie tumbles as risk assets get dumped in favour of the Greenback.
- Japan inflation data incoming, but could see a limited impact.
The AUD/JPY mimicked the Aussie against the US Dollar in Thursday's action as market forces greater than the single currency have taken control once more, and the Aussie versus the Yen is back into the 83.00 handle once again.
The Aussie fell against the Yen from a high of 83.94 yesterday, and is sticking close to the bottom heading into Friday's action. Market sentiment has reversed its recent flows and traders are dumping their riskier assets, including the Aussie, in favour of scooping up the US Dollar.
The Australian Jobs Report yesterday was a big miss, causing the AUD/JPY to fall from 83.83 to 83.44, but the Aussie had managed to stage a recovery and reach a new high before the bearish market sentiment set in during the London session, where the Bank of England's Mark Carney gave select words that soured broad market sentiment, and the risk-off mood carried into the US session.
While Friday is a non-starter for the Aussie on the economic calendar, the Yen will see inflation figures at 23:30 GMT late Thursday with the National Consumer Price Index. The national inflation figures will have a muted impact, as Japan's inflation is pre-screened through the Tokyo CPIs released weeks earlier.
AUD/JPY levels to watch
Yesterday's turnaround from just beneath the 84.00 major level punches in a lower high for the pair, while the pair's rapid descent may lend itself to a quick recovery, which would form the bottom of a channel on the H4 candles, but a recovery will have to beat resistance at the 50.0 Fibo level of 83.35 first, while a bearish continuation will run into major support at the previous support zone near 82.60.
