FXStreet (Bali) - AUD/JPY has broken a consolidation pattern established since late March this year between 93.00 and 96.50, with the rate currently paid at 97.70 yens per 1 Aussie, the highest level it's been since June 2013.
The incessant seek for high-yielding assets, that includes the Aussie (despite rates remain at 2.25% record lows), keeps providing broad-based support for the AUD, which coupled with the recent bout of selling in the Japanese Yen, has resulted in the upside resolution.
Yesterday, the Nikkei reported that the banking and insurance units of government-backed Japan Post Group had been actively selling yens as it aims to boost investments in foreign assets. If one throws into the mix appeasing geopolitical risk (for now), positive carry trade, and reassurance that RBA Stevens is not going to aggressively jawbone nor intervene in the Aussie, one can see why we have seen a relentless rise in the pair since bottoming at 94.00 round number last Aug 8.
In terms of technicals, immediate level of supply is seen at 97.23-30 with further offers expected all the way up to 98.00 as per the origin of a sharp move lower seen in June 2013. On the downside, 96.50 area should see plenty of bids looking to be filled, with additional cluster of demands expected near by. Only a break below 96.00 may suggest a possible shift in the bullish sentiment.