AUD/JPY looks to secure breakout leg as risk fortunes look brighter

The risk mood is faring better on the day so far and the aussie and kiwi – which have been rather resilient in the past two weeks – is taking full advantage of that today. The kiwi was bolstered earlier by a more hawkish RBNZ but is building on that to the best performing major currency on the day so far. But the aussie is also benefiting from that, climbing to fresh highs now in European trading.

AUD/USD is up 0.6% to 0.7262 while AUD/JPY is trading up 0.5% to 83.57 and looking to secure a breakout leg to the upside:

AUDJPY D1 23-02

The pair has been limited by key daily trendline resistance over the past two weeks but we are now staring at a potential breakout, which could lead to much stronger gains in the sessions ahead.

The next key resistance point will come from the 10 February high @ 83.99 but amid the potential for a more hawkish RBA tilt in the bigger picture, I would wager we could be staring at a retest of the October highs around 86.00.


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