AUD/JPY surges sharply today as the top gainer so far, on the back of strong risk appetite in the market. In particular, DAX is up nearly 4% back from a three-day break. CAC, up 2.1%, is not too far away while FTSE is also up 1% at the time of writing. Aussie is also supported by the relatively optimistic RBA statement as it’s firmly on hold stance.
AUD/JPY’s break of medium term falling trend line today as another signal of trend reversal. That is, firstly, whole fall from 90.29 should have completed at the 59.89 spike low. Outlook will stays bullish as long as 69.93 support holds. AUD/JPY should now target 38.2% retracement of 105.42 to 59.89 at 77.28 next. There is prospect of further rally to long term channel resistance at 80.80 in medium term.
