Market Spotlight: AUDJPY Breaking Out

AUDJPY Long TriggeredThe long idea issued in AUDJPY last week has now triggered on the break of 95.67, with price moving towards first target at 96.98. The rebound in risk sentiment this week, fuelled by a pause in the USD rally, has seen AUD trading with a better tone. The pair is also benefiting from the clear monetary policy divergence between the RBA and the BOJ. While the latter has reaffirmed its commitment to maintaining an easing presence in the market, the RBA has fully committed itself to pushing ahead with tightening as it battles inflation. As such, there is room for higher prices near-term.Keep An Eye OnThe current rally in AUDJPY is being fuelled by the pickup in risk sentiment as USD weakens from recent highs. With this in mind, look for a continuation of the current market dynamic to keep the pair supported while a pickup in USD is likely to slow the rally down near term. US consumer confidence data later will be key to watch, as will comments from Fed’s William who speaks. Traders will be keen to see how other Fed members judge the near-term outlook on the back of Powell’s comments last week.

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/market-spotlight-audjpy-breaking-out"
via IFTTT