ST oversold AUD/JPY showing traders are in a bearish mood; 92.17 support close by, though

FXstreet.com (Barcelona) - AUD/JPY is being used as a way to fade risk on Tuesday as the mood globally has clearly turned to “risk off”.

AUD/JPY, as the key non-euro tell for the global risk appetite, is faltering short-term

The AUD/JPY cross is obviously being used as a global play on risk Tuesday as it is moving lower conspicuously even as there is no meaningful news out of Australia or Japan. That being noted, judging by the trading action by AUD/JPY, apparently the global appetite for risk is waning – even if it is on a short-term basis.

Technical outlook for AUD/JPY

Elliott Wave technicians say the short-term oversold AUD/JPY is cascading lower in what appears to be the end of an initial thrust lower on the 60-minute chart (wave “a” or “i”). A bounce (wave “b” or “ii”) is likely at some point – possibly starting at around 92.17. After the bounce, another push lower (wave “c” or “iii”) is expected that should take the cross at least down to 91.88.

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