Short AUD/JPY – Deutsche Bank

Research Team at Deutsche Bank, advices to go short on the AUD/JPY pair for the target of 81.60 while entry being at 84.75 while maintaining a stop loss of 86.30 because of the below mentioned reasons.

Key Quotes

“Negative political developments in Italy as well as nascent tensions between China and the US threaten to keep global risk sentiment on the back-foot for the rest of the year, with AUD/JPY being the most sensitive cross. It remains the most overvalued currency pair in G10 on PPP, which is far from justified by real rates or the terms of trade. Speculative positioning makes the pair even more vulnerable to a risk-off move.”

“In Australia, we see a risk of this week’s Q3 GDP print being flat or even negative.”