The AUD/JPY has climbed higher the past couple of days and is approaching important resistance levels last seen in September.
The AUD/JPY has again seen bullish activity the past few days as the Forex pair knocks on the door of important resistance levels not genuinely traded since September. Global risk appetite has certainly increased the past few days, and the Nikkei Index has also benefited from optimistic sentiment. Clearly, the 77.000 level may prove to be an instrumental short-term psychological juncture for the AUD/JPY up above.
The US is celebrating the Thanksgiving holiday today which will cause less volume than normal within the Forex markets, but because the USD is not involved this will not be a real ingredient regarding the status of the AUD/JPY. However, the lack of American institutional investors will create less volume on international equity indices, and this absence may cause a lack of direction for some bourses which may see mixed outcomes as a result.
The above is written to suggest that the next two days of trading for the AUD/JPY may not see a great amount of impetus, even though the Forex pair is challenging key resistance levels. Alternatively, if the AUD/JPY is able to sustain its current value range short-term, it may suggest the Forex pair could see another push higher if optimistic sentiment remains strong in the global marketplace near term.
After testing short-term highs around the 11th of November, the AUD/JPY did see bearish momentum develop and a low of 75.500 was seen as late as the 20th of November. However, since reaching this low, the AUD/JPY has reversed higher and seen a considerable amount of momentum develop. The question speculators now must consider is if the short-term bullish trend experienced the past week will continue to mount and if a push towards the 77.000 will be accomplished.
Traders may want to consider continuing to pursue buying positions of the AUD/JPY as risk appetite shows the ability to be displayed. It will be important for the Forex pair to sustain its current price range and prove it is durable, but if this takes place today and tomorrow it could open the door for an additional push higher that makes current resistance levels appear vulnerable. There are no guarantees, but at the height of risk-taking in August, the AUD/JPY was trading slightly above the 78.000 juncture, which means there is considerable room for the Forex pair to traverse higher if bullish momentum builds.
AUD/JPY Short-Term Outlook:
- Current Resistance: 76.950
- Current Support: 76.640
- High Target: 77.180
- Low Target: 76.510