Analysis
Strongest vs Weakest - AUDJPY in the spotlight
AUD is getting drilled as risk-off rips through markets and softer commodity prices, while JPY sees shorts covered thanks to its safe haven label as well as US 10-year yields slumping.
Technically, the trade broke through the 50% Fibonacci level intra-day with the 61.8% level not far off too. The 61.8% level aligns nicely with the 86 support. Below there is the 200-day SMA at around the 84 mark. The RSI has nosedived and is very close to oversold territory. However, with very strong momentum, the RSI can remain oversold or become extremely oversold. If we see risk assets rip higher then 90 (just below the 50-day SMA) would be where I'd be closely monitoring.
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