AUD/JPY Defends Support Level Amid Interest Rate Differential
The AUD/JPY currency pair has shown signs of support at the 114-yen level, according to Christopher Lewis, a technical analyst at DailyForex. This level has been important in the past few trading sessions and has helped to turn around the market.
Lewis notes that the interest rate differential between the Australian dollar and the Japanese yen continues to push the AUD/JPY higher. He believes that this pair moves along with other currencies against the yen, which is facing trouble due to its massive debt burden and the Bank of Japan's limited ability to raise interest rates.
Lewis suggests buying above 115-yen, setting a stop loss at 114-yen, and aiming for a target of 119-yen. He emphasizes that this market continues to show strength despite its volatility and choppiness.