AUD/JPY: risk-off open, bears remain in control looking to break below 86

AUD/JPY has fallen below 86.50 in a bearish gap and has tested the 200 1hr sma at 86.12 with a low of 86.11 after opening at 86.25.

AUD/JPY is a barometer for risk and has set the landscape for the week while the Trump trade continues to unwind due to the manner in which he has started his presidency and as the controversy continues. Most concerning to markets are how Trump's executive orders are overruled by staff, that he then fires, and then by judges, in the case of the travel ban that was recently rejected, even after appeals. 

Weekend news wrap-up: Trump getting 'Trumped' on travel bans / WW3 on the horizon?

Meanwhile, there are geopolitical tensions mounting between Iran and China - while there are no immediate implications, there is an underbelly of concern in that respect, touched on in this weeks weekend news. Fundamentally for today, we await Aussie retail sales while AUD is making tracks on the bid and close to a full reversal of Nov 2016 downtrend from 0.7777. 

AUD/JPY levels

AUD/JPY has been supported since the end of last year by the 4hr 200 sma, today trading at 85.49 currently with spot at 86.30 at the time of writing. 86 the figure is first key support area that has been holding this month so far, guarding 85.20 and 85.00. 83.70 on the wide is the late Dec low. On the upside, 87.00 and 87.50 are near-term targets on a break of 86.70 (29th March high).

Economic wrap: nonfarm payrolls before Aussie retail sales - Westpac