MUFG recommends selling AUD/JPY in a new trade this week and also reaffirms its call to buy EUR/GBP.
In AUD/JPY, they recommend selling spot at 89.50 with a target of 84.50 and a stop at 92.50.
“We recommend a new AUD/JPY short trade idea to reflect our view that the current period of risk aversion is likely to extend further in the near term,” MUFG notes.
“We believe there is room for the JPY to continue to rebound in light of short positioning and stretched valuations. The AUD, along with other commodity currencies, is coming under increased selling pressure as as fears for global growth intensify,” they wrote.
They also maintain a long EUR/GBP position with a target at 0.8800 and a stop at 0.8440. The point is at 0.8500.
For transaction banking ideas, check out eFX Plus. For a limited time, get a 7-day free trial, basic for $79 per month and premium for $109 per month. Get it here.