AUD/JPY faces double whammy, weakest since Feb 9

The Australian dollar was hammered by its Japanese counterpart in the Asian session, helping AUD/JPY extends its bearish momentum into the second straight session, as risk-off persists at full steam.

The risk barometer, AUD/JPY, remains heavily offered amid a fresh bout of risk-aversion wave that gripped the markets, following the reports of the North Korean missiles launch attempt earlier today. The CBOE volatility index (VIX), a fear gauge, jumped almost 10% a day before, as the global equities melted.

Further, mounting concerns over the Brexit process combined impending uncertainties over Trump’s policies continue to rattle investors’ confidence, eventually boosting the safe-haven yen at the expense of the higher-yielding currency Aussie.

Later today, the RO-RO trends will continue to drive markets, having significant impact on the cross, while the US existing home sales data may provide some incentives, data-wise.

Technical Levels

Higher side: 86/86.26 (zero figure/ daily pivot), 86.56/59 (50 & 100-DMA), 87/87.11 (round number/ Fib R2)

Lower side: 85 (key support), 84.49/47 (Jan 5 & 6 lows), 84.02 (multi-week lows)