AUD/JPY stays on the front foot for the third consecutive day, refreshing a four-month high to 85.60 during Friday’s Asian session.

In doing so, the risk-barometer pair cheers firmer prints of S&P 500 Futures and downbeat US Treasury yields, as well as the hawkish tone of the Reserve Bank of Australia’s (RBA) Governor Philip Lowe. It’s worth noting that the quote ignores recently mixed headlines concerning the Ukraine-Russia tussles while portraying a bullish play.

As per the prior day's analysis, AUD/JPY Price Analysis: Bulls eye the 86.00 area, the price has rallied towards the target area.

AUD/JPY has been correcting from the daily highs this week and is now basing around a daily 61.8% Fibonacci retracement level near 84 the figure. The price has rallied from there leaving a strong bullish close on the charts from where demand could follow through for the days ahead and ultimately lead to prospects of a fresh high in this daily bullish cycle.

the price is well on its way towards the targetted area near 86 the figure. However, it was explained that there is weekly resistance, so chasing the price at this stage would be very risky business. If anything, bears can be getting prepared for a reversion in the coming days.

The W-formation is a reversion pattern and the price would be expected to pull back into the neckline of the W which resides between 84.30 and 83.68 for the weeks ahead.

On the other hand, for lower time frame traders, while the weekly resistance is near, there are still prospects for an opportunity to long AUD/JPY at a discount as the chart above illustrates.

AUDJPY Targeting 86.0 Price Before a Bearish Drop

Mar 11 2022

Stop Loss -1.08%

Holding time 5d7hr

85.589

Entry price

86.510

Stop loss price