AUD/JPY snaps two-day winning streak as S&P 500 futures drop

• AUD/JPY is reporting losses, following the two-day winning streak. 
• Risk aversion in the stocks could be driving the anti-risk JPY higher. 

AUD/JPY is flashing red in Asia, having gained ground in the previous two trading days. 

The JPY cross is feeling the pull of gravity, possibly due to fading US-China trade optimism, as indicated by the 0.37 percent drop in the S&P 500 futures. 

Shares in Hong Kong and Australia are also down, while Japanese and Chinese stock markets are lacking a clear direction, helping the anti-risk JPY gain ground. 

As of writing, AUD/JPY is trading at 79.34, having hit a high of 79.67 earlier today. 

Looking ahead, the currency pair could drop to the 50-day MA, currently at 79.11, as the hourly RSI has dipped into bearish territory below 50.00. The losses could be much deeper if the risk aversion worsens.

AUD/JPY Technical Levels