AUD/JPY: On a slippery ground near 5.5-month low, 71.00 on sellers’ radar

• AUD/JPY drops more than 1.0% as the risk-tone heavies.
• Mixed data from Japan failed to disappoint the sellers as the rush to risk-safety continues.
• Asian equities nosedive amid coronavirus risks.

AUD/JPY flashes 1.33% losses to 71.30, intra-day low of 71.10, during the early Friday. The risk-barometer accelerated its south-run amid clues that the coronavirus-led supply disruptions will have a magnified impact.

The risk aversion takes clues from the spread of coronavirus in South Korea and Europe. With the latest numbers from South Korea out, the Asian nation now has a total of 2022 COVID-19 cases compared to below 50 before few days.

To tame the fears of the outbreak, global policymakers are on the run. The South Korean FinMin showed signals for multi-billion dollars of stimulus whereas the People’s Bank of China (PBOC) conducts the second central bank bills swap (CBS) of the month. The PBOC is ready for CBS actions worth of 5-billion-yuan on Friday.

It should also be noted that the growing fears of a recession in Japan took only negative clues from the early-day data-dump while Japanese policymakers are ready to push for a huge stimulus.

While portraying the risk-off, the Asian equities mark the sea of red with Japan’s NIKKEI down 3.78% to 21,110 whereas China’s SZSE down more than 4.4% to 11,021 by the press time. Further, the US 10-year treasury yields are on their drop towards fresh record lows marked the previous day, around 1.244%, while being on the back foot near 1.259%.

Technical Analysis

A sustained break of October 2019 low diverts the bears to multiple bottoms marked during August 2019 near 71.00.