MUFG recommends selling AUD/JPY in a new trade this week and also re-emphasizes its call for buying EUR/GBP.
In AUD/JPY, they recommend selling at spot at 89.50 with a target of 84.50 and a stop at 92.50.
"We are recommending a new short AUD/JPY trade idea to reflect our view that the curret 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 alongside other commodity currencies are coming under more selling pressure as global growth fears intensify," they wrote.
They also maintain a long EUR/GBP trade with a target at 0.8800 and a stop at 0.8440. Spot is at 0.8500.