AUD/JPY price analysis: Aussie crashes below 100.00 against yen
AUD/JPY has dropped below 100.00 as the S&P 500 and Nasdaq's decline impacts the Australian dollar. Meanwhile, the Japanese yen strengthens with increased safe-haven demand amid global recession fears.
Key Points
- The S&P 500 and Nasdaq falling from all-time highs have contributed to a bearish trend for the Australian dollar due to their positive historical correlation.
- The Japanese yen has rallied from historic lows against major pairs as investors seek safe-haven assets amidst growing global recession fears.
- AUD/JPY hit its lowest price of 2024 under 96.00, down from a high of 109.00 less than a month ago, reflecting significant market volatility.
Risk-off sentiment in S&P 500 bearish for AUD
Recent declines in the S&P 500 and Nasdaq, which dropped from their all-time highs, have contributed to a bearish outlook for the Australian dollar. Historically, the AUD has maintained a positive correlation with these stock indices; thus, as investor sentiment turns risk-off, it negatively impacts the Australian dollar. Traders are advised to be cautious as this correlation does not indicate future results, but trends may continue if stock market volatility persists.
Japanese yen lifted by flight to quality
The Japanese yen (JPY) has seen a significant rally, rebounding from historic lows against several major currency pairs. This surge in JPY is primarily driven by escalating global recession fears, prompting investors to seek safe-haven assets. The yen's role as a traditional safe haven makes it an attractive option in times of economic uncertainty.
AUD/JPY hits lowest prices year-to-date
The AUD/JPY pair has reached its lowest price of 2024, trading under the 96.00 mark intraday. This figure is a stark contrast to less than a month ago when AUD/JPY traded as high as 109.00. The current downward movement reflects broader market trends, highlighting the significant volatility within this forex pair.
How to trade AUD/JPY
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on AUD/JPY
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.