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.

Related Articles
  1. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  2. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  3. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  4. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  5. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  6. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  7. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  8. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  9. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  10. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!