AUD/JPY downside playing out on soft antipodeans

AUD/JPY is pressured with a head and shoulders and price action breaking the neckline to the downside, along with renewed optimism for the US economy on the back of a bullish and hawkish Fed last week.

While risk is on, AUD/USD is driving the price and the antipodeans and commodities have been the worst hit on the back of the Fed and Trump's proposed policies for next year. The sell-off from 0.7520 triggered a fall out in stops in the cross below 86.40. The Aussie has broken below the 200 sma on the 1hr chart with the 83 handle in eye-shot.

"The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that coal and iron ore are likely to sustain a good portion of their dramatic rises, and economic data should improve in Q4 and Q1, but these forces are subservient to the US dollar’s trend," - explained analysts at Westpac.

AUD/JPY levels

AUD/JPY is at a critical level on the daily sticks and his making hard work of a break above the early 2016 triple top on a daily basis around 86.50/80. The price is back below here and a break lower opens 82.00 at September while 89.20 is the longer term target meeting early Dec 2015 highs.