AUD/JPY Breakout Hinges on Break Above 115 Yen Level

The Australian dollar has been rallying against the Japanese yen, but it's hitting resistance at the 115 yen level. This level has proven to be a ceiling for the AUD/JPY pair multiple times, and the recent Kevin Warsh speech from Jackson Hole may have contributed to the pause in momentum. According to Christopher Lewis, a technical analyst with over two decades of trading experience, the market is getting noisy, but it's also an area that's been a bit overbought.

Despite this, Lewis believes there's still potential for a breakout above 115 yen, which could send the AUD/JPY pair to the 120 yen level. He notes that a daily close above 115 yen would be a crucial indicator of a potential uptrend. If the market does break through this resistance level, it could lead to a significant move upwards.

However, Lewis also cautions traders to be aware of the risk of falling from the current levels and advises looking for buying opportunities in other currencies against the Japanese yen, such as the British pound or the US dollar. He emphasizes that this market continues to be noisy and may require careful management.