The AUD/JPY has continued to add fuel to its bullish move which was initiated on the 20th of August and speculators may be starting to believe higher values can be attained.
The AUD/JPY continues to break through important short-term resistance and is coming within sight of a range that was produced late in July and until the second week of August. As of this writing, the AUD/JPY is trading above the 81.000 level and if this can be maintained there appear to be technical reasons to suspect another leg higher can ensue. On the 11th of August, the AUD/JPY was trading near the 81.550 mark.
The lows produced by the AUD/JPY happened on the 20th of August and were certainly affected by nervous sentiment regarding coronavirus implications involving Australia. However, the puzzle may not be as simple as that; it should also be noted that the gyrations of global central banks and stimulus pronouncements have caused movements within the USD and JPY, which have certainly helped spur on the Australian dollar regarding sentiment and mid-term outlooks.
The low water marks achieved by the AUD/JPY are a fresh memory and traders may remain skeptical about the sudden reversal within the Forex pair. Questioning the durability of this bullish move higher is legitimate, but the trend may not be ready to stop quite yet. The AUD/JPY is near important mid-term resistance levels and, if the 81.130 to 81.200 junctures begin to get tested, it may prove to be a signal values from early August may be targeted.
Traders who look at long-term charts to gather their short-term perspectives will note that the AUD/JPY remains within the lower tier of its price range. On the 10th of May, the AUD/JPY was trading at nearly 85.800. Speculators are urged not to become overly greedy, but they may suspect the AUD/JPY has been oversold the past three months and there is room for the pair to traverse higher still.
Buyers of AUD/JPY should look at support levels carefully. If the current juncture of 81.000 holds that could be a potentially powerful indication that buying could ramp upwards. If lower support near the 80.900 to 80.800 junctures are tested but prove adequate, this could become an appropriate place for speculators with bullish sentiment to buy on possible lows while seeking higher price action.
AUD/JPY Short-Term Outlook
Current Resistance: 81.130
Current Support: 80.870
High Target: 81.410
Low Target: 80.310