FxWirePro: Sell Australian dollar against Yen targeting 78 area as political turmoil clouds Australia

Based on the recent happenings in Australia, where Prime Minister Malcolm Turnbull after narrowly surviving a no-confidence vote is set to face yet another test of his grip on the party, we would like to call on our readers to go short on the Australian dollar against the Japanese yen.

On 21 August 2018, Turnbull survived a challenge to his leadership of the Liberal Party by Home Affairs Minister Peter Dutton, winning the votes of 48 of their Liberal colleagues to Dutton's 35. Since then, the situation has become ever more tensed as the ideological gap has started fracturing the party. On Thursday morning, three of Prime Minister Turnbull’s cabinet members have resigned and joined the opposition, which has significantly raised the possibility of a second no-confidence vote.

Trade idea:

Taking the development into consideration, we would like to urge our readers to go short on the Aussie against the Japanese yen at the current rate of 80.8 and at rallies, with an initial target of 78 area with the stop loss around 84 area. The target is very likely to see extensions.