The AUD/JPY has demonstrated a long-term bullish trend, which has proven speculatively opportunistic for traders who enjoy wagering on the Forex pair. Yesterday did produce a slight downturn in momentum and the 80.200 to 80.000 support junctures were tested, but the 80.200 level did prove to be adequate as support as the day progressed and, in early trading today, the mark may have ignited another run higher.
Traders cannot expect a one-way avenue with the AUD/JPY, but for speculators who use their leverage conservatively and practice the art of limit orders to get in and out of positions, the Forex pair can be a comfortable pursuit. The AUD/JPY is now challenging values it last traded in December of 2018. Importantly, the Forex pair has shown ability in recent trading to sustain its bullish gains and value above the April 2019 levels of 80.200. If the current value range of the AUD/JPY is able to battle forward, speculative bulls may not only be targeting the important psychological level of 81.000, but higher values too.
The bullish trend of the AUD/JPY has been evident since the extreme lows made in March 2020, when coronavirus concerns ripped through Forex and caused bedlam. Since touching a low of nearly 64.000 in mid-March of last year, the AUD/JPY has incrementally climbed higher. In fact, the AUD/JPY has not only vaulted past its pre-coronavirus value of January last year, but it has begun to surpass these levels and build more bullish momentum since late October of 2020.
Global risk appetite remains optimistic and the AUD/JPY has seen its bullish trend reinforced as major equity indices have exerted new heights. Traders certainly must be cautious and mindful that reversals lower can happen. The use of stop losses is important. However, if a trader uses a purposeful methodology and enters buying positions of the AUD/JPY properly and cashes out winning positions, the Forex pair remains attractive.
The resistance level of 80.650 appears intriguing and it may be an opportunity for conservative traders to place a buy limit order above the current market if they want to have the short-term trend vindicated before speculating. However, speculative traders may be in favor of buying the AUD/JPY within its current price range and simply using solid stop losses below, while pursuing upward price momentum.
AUD/JPY Short-Term Outlook:
- Current Resistance: 80.650
- Current Support: 80.420
- High Target: 80.850
- Low Target: 80.230
