Price action in AUDJPY is highlighting some potential opportunities into next week. The recent decline from highs, framed by the bear channel, has paused recently with price settling into a block of consolidation. However, the current move looks likely to be only a pause with the risk of a break lower still visible here. If price slips below the 80.69 level, bears will be looking for the downtrend to continue with 79.57 the next target to note. The Aussie has been under recently while JPY has been firmer as a result of increased safe-haven demand as a result of resurgent COVID fears.
Key Data to Watch
Over a quiet data sheet next week, the main data focus will be on Aussie unemployment data. However, the broader risk backdrop will likely be more important. If COVID fears continue to develop over next week, AUDJPY is likely to be weighted to the downside. On the other hand, any improvement will likely dampen support for JPY, leading the pair higher.