AUD/JPY: RBA governor Lowe fails to impress, Yen spiking on Cohen departure

• The AUD/JPY recover is under threat once again, as Gary Cohen signals abandoning his post in the White House.
• RBA governor Lowe provided nothing new for Aussie traders, leaving the AUD twisting in the wind.

The AUD/JPY pair recovered in Tuesday trading but is under threat again, dropping into the 82.50 handle as of writing on risk-shriveling news that Trump is losing yet another high-powered advisor.

Risk appetite showed up in full force during Tuesday's London session, driving risk assets higher and dragging the Aussie higher against the USD and the safe haven Yen. Market sentiment cooled slightly through New York but remained on-balance with equities flat and bond yields down slightly. The Aussie was unmoved heading into the overnight session following a continued dovish tone from Reserve Bank of Australia (RBA) governor Philip Lowe, whose speech did little but confirm what markets already knew: the RBA will be standing pat on rates for some time as the Australian economy continues to lag.

The Yen is gaining ground ahead of the Tokyo markets, with market fears returning on the news that another key Trump ally is departing the White House staff. Gary Cohn, Trump's top economic advisor, is resigning from his post. Mr. Cohen has given no clear reason for leaving, stating that there is no one particular reason for his departure. Cohen's bowing out of Trump's circle comes at a crucial time, with Trump threatening stiff tariffs on steel and aluminum imports last week.

AUD/JPY Technicals

With markets declining on reaction to Gary Cohen's departure, the Aussie is falling against the Yen as traders once again pile into the Japanese safe haven currency. The AUD/JPY pair is still deeply off its 200-day SMA, and H$ candles show the recent bounce back from 81.50 is facing serious challenges. Intraday support is at 82.15 and 81.48, with resistance at 83.32 and 84.15.