This via Barclays on the Australian dollar against the Japanese yen
Trade for the week ahead: Short AUDJPY
- We recommend being short AUDJPY (spot ref: 81.03)
- targeting 78 with a stop loss of 83.138 (18-month 50% retracement) after the well-capped rebound last week
- Sino-US trade war concerns could weigh on a high-beta currency such as AUD. particularly given its late-cycle domestic dynamics and expected moderation in Australia's terms of trade
- On the other hand. JPY could benefit from safe-haven flows and domestic political scandals point to a risk of further appreciation
