The Australian Dollar (AUD) against the Japanese Yen (JPY) is an exciting pair for its relation to risk. The pair is often among one of the most highly correlated pairs to price action in US equities on a short to medium term basis. The pair generally tends to rise in a low risk environment on carry flows while the opposite is true when we see a 'risk-off' approach in the markets.
AUD/JPY rates are testing the ascending trendline from the March 2020 and August 2021 lows.
At the end of February it was noted that “bullish momentum may carry the pair to the yearly high just below 84.00, before continuing towards the ascending trendline from the March 2020 and August 2021 lows closer to 85.00.” AUD/JPY rates have sustained their push above symmetrical triangle resistance from the October 2021 and January 2022 swing high, and are flirting with a break above the ascending trendline from the March 2020 and August 2021 lows near 85.00.
Bullish momentum remains firm, with the pair above its daily 5-, 8-, 13-, and 21-EMA envelope, which is in full bullish sequential order. Daily MACD is trending higher while above its signal line, and daily Slow Stochastics are holding just below overbought territory. A break above 85.00 on a closing basis would increase the likelihood of a quick jaunt to the 2021 high at 86.25.
AUD/JPY rates are testing the ascending trendline from the March 2020 and August 2021 lows.
At the end of February it was noted that “bullish momentum may carry the pair to the yearly high just below 84.00, before continuing towards the ascending trendline from the March 2020 and August 2021 lows closer to 85.00.” AUD/JPY rates have sustained their push above symmetrical triangle resistance from the October 2021 and January 2022 swing high, and are flirting with a break above the ascending trendline from the March 2020 and August 2021 lows near 85.00.
Bullish momentum remains firm, with the pair above its daily 5-, 8-, 13-, and 21-EMA envelope, which is in full bullish sequential order. Daily MACD is trending higher while above its signal line, and daily Slow Stochastics are holding just below overbought territory. A break above 85.00 on a closing basis would increase the likelihood of a quick jaunt to the 2021 high at 86.25.