AUD/JPY
Last night the RBA released their minutes and removed the phrase saying that the next rate move was 'more likely up than down'. Read the fullminutes here.However, what has really weighed on the AUD overnight has been the announcement that President Trump is wanting to identify a further $200 billion of Chinese goods if China increases tariffs on the US. As Australia has close trade links with China this headline also weighs on the AUD.
The continuation of the trade war theme has seen a dive into the Yen. The Nikkei is down nearly a full percent and a half at time of writing and that risk off tone has gripped the markets.
So, we have our pair to trade for the next session: AUD/JPY short. Entries can be found on the fib retracement from yesterday's high with entries in the region of 81.50 to 81.85. Stops can be placed fairly tightly at around the 82.20 swing point, as if price retraces that far, something is wrong with the trade.
Risks to the trade: The trade war being 'resolved' and risk off sentiment evaporating from the market.
