AUD/JPY chart - Trading View
AUD/JPY spikes higher for the 3rd straight week, outlook is bullish. Aussie stays bid ahead of Reserve Bank of Australia meeting minutes. Strength in the Chinese yuan and vaccine optimism also supports the antipodeans.
On the other side, the Japanese Yen losses ground despite upbeat GDP data. Japan's economy expanded by 3.0% in the fourth quarter, a better performance than the median estimate of 2.3%. Yen remains under downward pressure after unexpected comments from Prime Minister Yoshihide Suga who said that he is closely watching the forex moves.
Data Watch - Australia:
Wednesday - January Westpac Leading Index
Thursday - January employment figures
Friday - Preliminary estimates of the February Commonwealth Bank PMIs, preliminary estimates for January Retail Sales
Technical Analysis:
AUD/JPY trades with a strong bullish bias. Price action is above major moving averages. Volatility is high and rising and momentum is bullish. GMMA indicator shows strong bullish bias on daily and weekly charts.
Support levels - 81.47 (110 month EMA), 79.56 (50-DMA), 78.98 (200W MA)
Resistance levels - 83.12 (76.4% Fib), 84.63 (200 month MA), 85
Summary: AUD/JPY is on track to test 76.4% Fib at 83.12 ahead of 200 month MA at 84.63. Watch out for RBA minutes due Tuesday for further impetus.
