AUD/JPY is currently in an impulsive bullish run after the positive economic report published yesterday. The Australian Employment Change report was published with a better than expected result at 42.0k versus the forecast of 9.7k. Moreover, the unemployment rate decreased to 5.5% which was expected to be unchanged at 5.7%. With the positive employment reports, AUD got a massive boost against JPY yesterday which can still be observed. Today the Bank of Japan revealed its policy statement, leaving the rate unchanged. As the short-term interest rate is one of the key factors for currency valuation, this news could not provide much support to the Japanese currency to compete against the aussie. As of the current fundamental situation, AUD is expected to dominate over JPY in the coming days.
Now let us look at the technical view. The price is currently at the edge of the resistance level of 84.50. If it breaks above the level with a daily close today then we will be looking forward to buy with a target towards 86.20. As the market has already shown a good amount of exhaustion recently, further bullish move is expected in this pair. The bullish bias is expected to continue until price breaks below 83.00 with a daily close.
