Home / General / Trade for the week ahead: Short AUDJPY: FXWW
Trade for the week ahead: Short AUDJPY: FXWW
From the FXWW Chatroom: 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 JPY appreciation.