MUFG expects AUD/JPY to fall this week
For this week, analysts at MUFG recommend selling AUD/JPY this week with a target of 73.10 and a stop at 77.10.
"There are a lot of FX pairs that look stretched and continue to suggest to us greater near-term risks of a correction the other way. We are closing in on the end of the summer trading period with the potential for fresh trading activity over the coming weeks as we commence in the month of September," analysts at MUFG note.
"What is clear is taht the global risk from the spread of COVID has increased -- both in Europe and Asia and Oceania... AUD/JPY is the go-to trade for reflecting some correction in risk ,which we believe is plausible,"