AUD/JPY: Big clean-out underway, more to come.

I wouldn’t be trying to pick bottoms in this pair anytime soon. Asset managers are caught the wrong side of this move and are trying to exit and the FX market is also positioned the wrong way. Turnover is huge and volatility will remain high.

The risk remains to the downside for all of the Yen crosses and the chat in the FX market is that the AUD still remains the most vulnerable.