AUDJPY Poised for Higher Highs?
The AUDJPY uptrend has paused over recent weeks with price settling into a range of consolidation between the 82-level support and resistance at 85.43. However, in line with the longer-term trend the focus is on a continued push higher while the 82 level holds in place, with the rising trend line from 2020 lows offering support also. Earlier this week we saw further improvement in the Australian labour market with the economy adding 70.7k jobs and the unemployment rate falling back to 5.6%.
Risk Appetite Supporting
The uptick in risk appetite this week has also helped AUD appreciate which is a theme which looks likely to continue as broader reopening takes place around the globe and vaccination optimism continues. JPY, on the other hand, looks likely to suffer from reduced safe haven inflow as global asset markets continue to climb.
With this in mind, the pair looks susceptible to a continued breakout higher in the near term with a move above the 85.43 level resistance likely to unlock the path to 87.27 next. This view will only alter on a downside break of the 82 handle.
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