AUD/JPY drops below 23.6% Fib support, suggests risk-off ahead

The AUD/JPY is back below 79.61 (23.6% of Nov 2014 high- June 2016 low) in Asia after having failed to hold above 200-DMA yesterday.

Trades at 100-MA on 4-hr chart

At the time of writing, the cross was seen trading at 78.39 (4-hr 100-MA). Yen has been gaining ground since the early US session after the latest poll showed Trump in lead over Clinton.

The AUD/JPY, being a global risk barometer, turned lower from the NY session high of 80.64 to trade around the 4-hr 100-MA in the Asian session.

Moreover, the losses seen in Asia only suggest the risk assets in Europe could have a tough time today.

AUD/JPY Technical Levels

A move back above 79.42 (76.4% of Brexit day high-low) would open doors for 80.00 levels (zero figure). A violation there could yield a re-test of 80.64 (previous day’s high). On the lower side, a breach of 79.17 (Oct 31 low) would shift risk in favor of a revisit to 78.83 (weekly pivot S1) and 78.72 (Oct 21 low).