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3 Mar 2014
AUD/JPY flirts with 90.00 on risk off selling
FXStreet (Bali) - AUD/JPY has been one of the pairs worst hit by the escalation of tensions between Ukraine and Russia, resulting on a -0.8% decline so far today, from 90.88 US close Friday down towards 90.14, lowest since Feb 6 2014.
The latest geo-political developments in Ukraine, with the US backing the sovereignity rights of the country against the Russian invasion in Crimea, are causing a flight to safety, with classic old risk-on/risk-off trades back in fashion, which means sharp declines in G10 vs JPY, CHF.
According to Jim Langlands, Founder at FXCharts: "Buying dips towards 90.00 may be the way to go, with a stop loss placed sub 90.00." However, Jim adds a note of caution, saying that "an escalation in Russia/Ukraine would most likely see the cross head through the base of the range and below 90.00 as the market exits all risk positions", thus Jim suggests "to tread the pair carefully."
The latest geo-political developments in Ukraine, with the US backing the sovereignity rights of the country against the Russian invasion in Crimea, are causing a flight to safety, with classic old risk-on/risk-off trades back in fashion, which means sharp declines in G10 vs JPY, CHF.
According to Jim Langlands, Founder at FXCharts: "Buying dips towards 90.00 may be the way to go, with a stop loss placed sub 90.00." However, Jim adds a note of caution, saying that "an escalation in Russia/Ukraine would most likely see the cross head through the base of the range and below 90.00 as the market exits all risk positions", thus Jim suggests "to tread the pair carefully."