AUD/JPY Breakout Imminent as Yen Continues to Weaken
The Australian dollar has continued its upward trend against the Japanese yen, with some analysts predicting that it may break through the crucial 115 yen level. According to technical analyst Christopher Lewis of DailyForex, this pair is currently trying to sort out what to do next, but there is a certain amount of appetite for the Australian dollar due to hawkish central banks in Australia and New Zealand.
Lewis notes that despite the recent bullish pressure, the 115 yen level has been a challenge for the AUD/JPY pair in the past. However, with interest rates differing in favor of the buyers, it is possible that this level may finally be broken, allowing the market to go much higher.
Lewis also suggests that if gold gets a bid, it could help the Australian dollar rise further, but at this point, he believes the Japanese yen is more of an issue than the Aussie itself. He expects the yen to continue getting sold into, which would ultimately lead to a potential breakout above 115 yen.