AUD/JPY is firming as the day moves on, despite the risk-off feel on a very busy week ahead, a week where analysts at Rabobank said, "to be the most important of the year to date". Currently, AUD/JPY is trading at 83.29, having made a high of 83.34 and a low of 83.00.
AUD/JPY is recovering from the lows of 82.58 where the pair dropped hard on yen strength last week from 84.53. Traders were tracking the stock markets on Thursday where the yen picked up a gigantic bid from 110.19 200-D SMA territory, right down through the Kijun at 109.76 level and on to the Tenkan at 109.19. The pair stabilised there and recovered back to the Kijun on Friday with NY traders taking on the pessimism of European markets to close up on Wall Street. AUD/USD also recovered as copper took off again.
For the week ahead, AUD/JPY can continue to recover on higher copper so long as geopolitical noise doesn't get ahead of the Central Banks meeting this week where the Fed is expected to hike rates, the BoJ to hold and the ECB to be the one to really watch. Risk of sentiment will invariably be bearish for the risk barometer, A.K.A, AUD/JPY.