Stock indices erased their Friday's losses, and the AUDJPY cross was seen 0.7% higher on Monday, trading at around 76.00.
As long as the Aussie remains above previous lows near 75.60, the medium and short-term outlooks seem bullish. As previously discussed, the sentiment is again positive, which should support the commodity-linked currencies and undermine the yen.
However, if the price declines below 75.60, we could see a quick decline toward 75.00, and in this case, the short-term trend would most likely change to bearish.
Alternatively, if the cross rises above the 76 resistance, where October's highs are located, it might be a strong bullish signal. The next leg higher could target 76.50 or possibly the 77 threshold.