AUD/JPY: Downside opening up towards 78.00 this week - Barclays

The Barclay Research Team provides key technical levels to trade the AUD/JPY cross in the week ahead, with the bias leaning towards the downside on the back of the US-China trade concerns.

Key Quotes:

“Trade for the week ahead: Short AUDJPY.

We recommend being short AUDJPY (spot ref: 81.03).

Targeting 78 with a stop loss of 83.138 (18-month 50% retracement) after the well-capped rebound last week.

Sino-US trade war concerns could weigh on a high-beta currency such as AUD. particularly given its late-cycle domestic dynamics and expected moderation in Australia's terms of trade.

On the other hand. JPY could benefit from safe-haven flows and domestic political scandals point to a risk of further appreciation.”