AUD/JPY steady above 50% retracement of 2014 low/high

FXStreet (Guatemala) – AUD/JPY has been changing hands with a bearish bias as we start the week in thin holiday season markets.

The RBA is sighted to need to act next year, which is dampening the trade in the cross but the greenback is keeping the Yen on the back foot while markets have been willing to trade on risk into the closing sessions of the year.

AUD/JPY is also pressured by the RBA who believe the Aussie is above its fundamental value and they estimate that GDP is going to be below trend due to a subdued labour market weighing on consumption growth. In the current bid climate, the 92 level is looking out of reach below 50% retracement of this years move and we are consolidated on the latest rally.