Market Spotlight: AUDJPY Short Hits First Target

market-spotlight:-audjpy-short-hits-first-target

AUDJPY Breakdown UnderwayThe recent AUDJPY short idea highlighted in a market spotlight this week has now hit its first target at 89.13. The reversal in risk appetite over recent session and the rise in safe haven support for JPY has helped drive the pair lower and with the retail market reducing its net-short position rapidly as we broke through key support at 90.76, the focus remains on a continuation lower towards the next targets at 87.35 and 85.43 thereafter.Keep An Eye OnThe current theme of risk off trading looks likely to keep AUDJPY pressured while it remains intact. With this in mind, important to monitor risk flows over coming sessions. Any shift in the current narrative, such as a short squeeze in equities, a pull back in USD etc, will likely curb the current downside. Data wise, little to note as we head through the end of the week.Next week, however, we have the RBA minutes, and Aussie CPI followed by Aussie labour market data and the parliamentary elections in Australia. So, plenty to keep an eye on next week with regard to this trade. Will update as progress.

Source: Tickmill

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