AUDJPY Sees Lift Off

The AUDJPY channel break trade is kicking into gear now with price hitting the 83.94 initial target following the breakout above 82. With both MACD and RSI giving firm bullish signals here and with the retail community heavily short AUDJPY, there is room for price to continue to the 85.43 level highs. Aussie labour market data overnight added to the optimism around the Australian economy as lockdowns end. The unemployment rate fell back to 4.6% from 4.8% prior, keeping the focus on further upside for now.

Key Data to Watch

Little in the way of key data for either AUD or JPY in the near term. Next week’s RBA minutes will be closely watched though, given the muted meeting, not much to be expected. Instead, keep an eye on broader risk themes, with the ongoing energy and commodities rally likely to keep AUDJPY supported near term.