AUD/JPY retreats from one-month highs, risk-off ahead?

The AUD/JPY cross is losing altitude in Asia, after having clocked a one-month high of 86.10. The pair was last seen trading around 85.60; down 0.34% on the day. 

The drop in the AUD/JPY pair, a risk barometer, suggests the risk assets could have a tough day ahead. This goes down well with the fact that Trump did not talk about stimulus during his press conference yesterday, something the markets were expecting. 

The demand for the Japanese Yen spiked in Asia after the data released in Japan showed strong exports growth and a rise in the current account surplus. 

The USD/JPY pair dropped 0.34% to 115.00. Meanwhile, the AUD/USD pair traded largely unchanged on the day around 0.7445 levels. Thus, the AUD/JPY cross dropped 0.34% on the day.

AUD/JPY Technical Levels

A break below 85.46 (5-DMA) would open the doors to 85.05 (10-DMA) and then to 84.57 (Jan 6 low). On the higher side, a break above 86.10 (Wed’s high) could yield a rally to 86.61 (Dec 12 high) and 87.00 levels (zero figure).