Listen to the latest market mood for the AUDJPY pair.
Weak JPY, Strong AUD
The AUDJPY pair is set to gain from a COVID-19 vaccine. The AUDJPY pair is often traded as a proxy for global growth. With vaccine hopes well underway, large levels of fiscal and monetary support, rising commodity prices and optimism for a return to growth in 2021 the AUDJPY pair stands to gain from current prices.
The weekly chart has shown a break of a head and shoulders pattern and a measured target of 97.00 would be the ultimate target for buyers. Stops would be run underneath the right shoulder at 73.00.
- The main risk to this trade is if global growth does not happen this year.
- Another risk is if COVID-19 cases spike higher and increase lock downs before a vaccine comes along.