AUD/JPY: markets risk barometer signals that there could be trouble ahead

• AUD/JPY: up to test the 50-D SMA but struggles as risk turns sour.
• AUD/JPY: Trump and Russia butting heads over Syria causing a flight to safety. 

The markets risk barometer, AUD/JPY, has been capped as risk turns sour again on the geopolitical front, this time with the focus away from trade wars to actual war where the tension in the ME is heating up again and markets are starting to pay attention. Currently, AUD/JPY is trading at 82.99, down -0.26% on the day, having posted a daily high at 83.30 and low at 82.67.

AUD/JPY has rallied to the daily descending trendline resistance but is once again struggling here meeting the 50-D SMA as headlines have been crossing where Trump and Russia are butting heads over Syria. 

Trump administration has been working to marshal international support for a possible military strike against Syrian President Bashar al-Assad for an alleged chemical-weapons attack, a move that is rubbing the Russians up the wrong way who have warned and pleaded the US to refrain from military intervention or be prepared for retaliation.

"I would once again beseech you to refrain from the plans that you're currently developing," Moscow's UN envoy Vasily Nebenzia said on Tuesday.

He warned Washington that it will "bear responsibility" for any "illegal military adventure" it carries out.

President Donald Trump tweeted today that the relationship with Russia“is worse now than it has ever been, and that includes the Cold War":

Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia,  because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!

Risk-off play is on the rise with a big spike in gold and WTI making fresh YTD highs. However, stocks are climbing, (lead by tech stocks), and that is making for higher US yields, (US 10yrs -0.52% but at 2.7863%, up from 2.7534% low and below 2.8027% high) for now. 

AUD/JPY levels

AUD/JPY is now making tracks to a 4-hr resistance level at 83.30, a previous low and high in Feb and March. RSI is on the rise and momentum is picking up again. The daily stick's indicators are leaning bullish as well with the price testing the aforementioned 50-D SMA and channel resistance. 84.30 is the next big level on the upside ahead of 84.50. To the downside, the 21-D SMA is located at 81.98