AUDJPY trades above the 113 level on a strong Australian dollar. Yesterday, it reached its highest point around 113.60; it is currently trading at roughly 113.48
The Japanese yen is now experiencing a unique "safe-haven paradox," whereby its customary role as a defensive asset in times of geopolitical turbulence is being regularly diminished by Japan's significant structural reliance on energy imports through the Strait of Hormuz. Usually, uncertainty drives investors to the yen. Still, the danger of a naval blockade pushing oil prices to USD 130 per barrel generates a substantial liability since the ensuing increase in energy costs and trade deficits outweighs the perceived stability of the currency. Due to this vulnerability, which has been exacerbated by a dovish Bank of Japan and low domestic inflation, the USD/JPY pair has been trading close to the 159.00 level. This has placed ongoing pressure on the yen and prompted the Japanese government to consider direct market intervention to reduce the increasing dangers of stagflation caused by rising energy costs.
|
Technicals |
CMP -113.375 |
Trend |
|
|
1- Hour chart |
Value |
|
|
|
55 EMA |
113.02 |
CMP> value |
Bullish |
|
200- EMA |
112.06 |
CMP >value |
Bullish |
|
365- EMA |
111.50 |
CMP>value |
Bullish |
Major support- 113/112.69/111.80
Major resistance- 114/115/116.25
|
Momentum indicator |
Inference |
Value |
|
CCI(50) |
Bullish |
82.12 |
|
ADX |
Neutral |
|
It is good to buy on dips around 112.50 with SL around 111.70 for a TP of 115.
