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Australian Dollar Price Forecast: AUD/JPY Eyes Bullish Continuation

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Australian Dollar (AUD/JPY) Price Outlook:

  • Continued threat urge for food has helped AUD/JPY climb greater, past pre-covid ranges
  • Latest positive aspects noticed the pair assault longstanding resistance which can now act as help
  • That mentioned, hints of threat aversion in fairness markets may undermine the Australian Dollar in the event that they proceed

Australian Dollar Price Forecast: AUD/JPY Eyes Bullish Continuation

AUD/JPY broke above an space of key resistance final week, shifting past the 76.85 mark for the primary time since Might 2019. Widespread threat urge for food and continued financial restoration within the wake of the coronavirus have helped bolster the Australian Dollar and additional progress could permit for extra AUD/JPY positive aspects. Both means, the medium-term outlook for the pair has possible loved a lift after the latest technical break.

AUD/JPY Price Chart: 4 – Hour Time Body (June 2020 – September 2020)

AUD/JPY price chart

To that finish, prior resistance across the 76.85 mark had labored to maintain worth contained since early June most lately, however had proven various ranges of affect relationship again to Might 2019. Thus, the bullish break above 76.85 might be seen as a fairly important technical improvement – one which will have opened the door for a continuation greater.

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With that in thoughts, there may be little to counsel worth will proceed greater unabated. Attainable resistance resides narrowly overhead across the 78.68 mark and the Australian Dollar may come underneath fireplace if threat aversion experiences a significant enhance. Nonetheless, AUD/JPY can look to get pleasure from a wide range of potential help beneath.

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An ascending band from mid-June helped information worth greater into September, regardless of a short breakdown in late August. Whereas minor, the bearish break may have significantly undermined the extent’s significance, so help round this degree going ahead is likely to be tenuous at greatest.

Fortunately for bulls, secondary help is likely to be provided by the extent at 76.85 and the 200-period shifting common on the 4-hour chart which seemingly stalled the reversal in late August. Collectively, these numerous ranges may provide a bounty of help to AUD/JPY because it appears to be like to proceed its gradual pattern greater. Within the meantime, observe @PeterHanksFX on Twitter for updates and evaluation.

AUD/JPY MIXED

Knowledge offered by

of shoppers are web lengthy. of shoppers are web brief.

Change in Longs Shorts OI
Every day -19% 0% -8%
Weekly 22% -24% -10%

Additional nonetheless, IG Shopper Sentiment Knowledge reveals retail merchants are net-short AUD/JPY, an encouraging signal as we usually take a contrarian stance to IGCS information.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and observe Peter on Twitter @PeterHanksFX

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