Listen to the latest market mood for the AUDJPY pair.
Strong AUD, Weak JPY
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 daily chart has shown a break of a head and shoulders pattern on the daily chart and a measured target of 82.00 would be the first target for buyers. Stops would be run underneath the right shoulder at 75.00.
Therefore expect AUDJPY buyers at market.
- The main risk to this trade is if global growth does not happen next year.
- Another risk is if the US stimulus bill is not passed and equity markets fall. This would invalidate this outlook.