Chart of the Day AUDJPY

<h2><span>Chart of the Day AUDJPY</span></h2>
<p><strong>AUDJPY – Probable Price Path</strong></p>
<p><span>US equities declined sharply on Wednesday as dismal economic data and weak bank earnings fueled concerns over the COVID-19’s impact on the US economy. Yields on US Treasuries fell across the board on Wednesday as risk aversion flared up again. The yield curve flattened Wednesday, with the spread between the 10-year and 2-year narrowing to nearly 43bps from 52bps on Tuesday. </span></p>
<p><span>Oil continued to tumble, dropping to its lowest level in more than 18 years on Wednesday amid reports suggesting persistent oversupply and collapsing demand due to global coronavirus-related lockdowns could continue to hammer prices. </span></p>
<p><span>The US dollar rebounded on safe haven demand amid growing concerns that the damage to the global economy from the outbreak will be protracted. US retail sales plunged a record 8.7% in March. That was the largest one-month decline since the department began tracking the series in 1992, after falling by a revised 0.4% in February. Expectations were for retail sales to have fallen 8.0% last month. In further evidence of economic damage from the COVID-19 outbreak, the Empire State Manufacturing Index hit -78.2, blowing past the prior worst reading the index had seen of -34.3 during the financial crisis. </span></p>
<p><span>Attention on Thursday will be the latest US initial jobless claims, which consensus expected at 5.5 million (Bloomberg estimate as at 16 April). Last week’s print brought total claims over the three weeks prior to more than 16 million, implying that about 10% of the US workforce had filed for unemployment benefits over that time. US housing starts and permits for March, as well as the US Philadelphia Fed Survey for April will also be released. </span></p>
<p><span>According to the Fed’s latest Beige Book report, economic activity has shown a deep decline due to measures taken during the COVID-19 scare, with leisure and hospitality as well as retail the hardest hit so far. The report released Wednesday also said most areas saw manufacturing declines that varied among industries. Food and medical product producers saw strong demand but faced obstacles in production and supply chains</span></p>
<p><img class="aligncenter size-full wp-image-41906" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-16-08.59.25.png" alt="" width="1606" height="1221" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-16-08.59.25.png 1606w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-16-08.59.25-300×228.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-16-08.59.25-1024×779.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-16-08.59.25-768×584.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-16-08.59.25-1536×1168.png 1536w" sizes="(max-width: 1606px) 100vw, 1606px" /></p>
<p><span>From a technical and trading perspective, the AUDJPY has recovered half this year’s losses trading back to the 50% Fibonacci retracement area, yesterday saw a key day reversal and has subsequently flipped the daily chart bearish as per the near and longer term volume weighted average price. As such bearish exposure is warranted on a breach of yesterday’s lows, there are some key support areas to watch below. Firstly the symmetry swing objective sighted at 66.00, below here we look to 64.65 and then the 62.00 level. Only a breach of yesterday’s highs would negate the downside thesis suggesting an upside extension to test the equality objective at 72.24. The AUDJPY trades a risk proxy and the bearish thesis should be considered with current Indices views <a href="http://blog.tickmill.com/tech-analysis/chart-day-us500-sp500-8/">S&amp;P500</a> &amp; <a href="http://blog.tickmill.com/tech-analysis/chart-day-ustec-nasdaq/">Nasdaq </a></span></p>
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