AUDJPY bounces off uptrend line

20/01/2021

Sentiment was very positive on Wednesday and stocks were rocketing higher, which helped the AUDJPY cross higher.

At the time of writing, it was seen 0.4% stronger, trading at around 80.20.

The resistance appears to be at the current cycle highs, slightly below the 81 level. If bulls push the Aussie above that resistance, the long-term uptrend could be confirmed, opening space toward 84.50, where the Summer 2018 highs are seen.

From the short-term point of view, rising above 81 would most likely trigger stop losses, which might push the cross to 82.00.

Alternatively, if sentiment worsens, the support zone could be seen at 80.00, where the steep bullish trend line is right now. Another demand zone is probably at this week's lows of 79.50.

As long as stocks continue rising, which can be forever, if governments and central banks will throw free money everywhere, the AUDJPY cross might be supported. 
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