AUD/JPY: A tactical sell - ANZ

Research Team at ANZ, notes that the recent rally in AUD/JPY has largely been driven by a stronger USD/JPY and in the short term this strength is starting to look overdone.

Key Quotes

“Profit taking by Japanese investors, a flatter curve in the US, or a rise in equity market volatility could all be catalysts for the reversal.”

“Risk/reward favours selling AUD/JPY at 85.32 with a stop above the range high at 87.00 and a target of 80.”