AUD/JPY: bears attacking the daily uptrend, awaiting BoJ this week

AUD/JPY took a nose dive in early Asia, falling from above 86.80 and down to 86.57 the low so far in a bearish opening gap. In Tokyo, resumption of selling has taken place as the yen gathers pace across the board.

AUD/JPY has been in a correction of the daily bullish trend and since the highs just through the 87 handle, falling away heavily since 86.90 and loss of traction there. The Yen is back in vogue as markets dump the dollar again in what is a volatile state of play this year so far for the greenback. Trump is, of course, taking the headlines and the growing uncertainty of the outcome of his policies that he has already started to put in to place are supportive of risk-off and safe-haven plays, such as the yen.

Weekend news wrap up: Trump and politics from around the world

Bank of Japan seen standing pat on Tuesday - Reuters poll

The BoJ is going to be the focus, but markets are not expecting a taper anytime soon, while the bank remains committed to its objective of above 2% inflation. Meanwhile, the RBA will be coming back from its chill-out seasons soon and with much to think about considering the miss in Q3 and Q4 GDP and inflation concerns that are still well below the target bracket, making for the potential of a call to action from the RBA in respect to interest rates. 

AUD/JPY levels

AUD/JPY is breaking below the 4hr 10 sma and further below and away from R3 87.11, R2 87.00 and R1 86.81. The classic pivot point is located at 86.70 where the price is falling below currently, being held up by S1 86.51 before  S2 86.40 and S3 86.21. 85.80 is a key support thereafter with the 100 sma on the 4hr sticks located at 85.85.