AUDJPY marches toward summer highs

04/12/2020

The AUDJPY cross was consolidating on Friday and was seen flat, trading at around 77.20 during the London session. 

The Aussie is up 5% against the yen since November as sentiment improved due to various vaccine news. 

The cross managed to get above the strong resistance zone of previous highs in the 76.80 region. As long as the Aussie remains above this level, the short-term outlook seems bullish, and dips to this level could be bought. 

However, if this support is broken down, we could see a decline toward 76.50 or possibly to the 76 level. 

On the other hand, if sentiment remains positive, a further rally can occur, with the first target near this week's highs of 77.50. From then, it is a small distance to reach the summer highs of 78.50.

Since the greenback has been down sharply against most of its major peers in November, but the USDJPY pair remained flat, the AUDJPY cross managed to book notable gains due to the strength of the AUDUSD pair.
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