AUD/JPY hits fresh high since July 2024, around 106.80 as fiscal concerns weigh on JPY

💡 DMK Insight

The AUD/JPY’s bounce from 105.20 signals a potential trend reversal, and here’s why that matters: This pair’s recent strength could indicate a shift in risk sentiment, especially as traders look for safe havens amid global economic uncertainty. A sustained move above 106.00 could attract more buyers, potentially pushing the pair towards 107.00. Watch for any economic data releases from Australia or Japan that could impact this momentum. If the pair retraces back below 105.20, it might signal a false breakout, prompting traders to reassess their positions. Keep an eye on correlated assets like the Nikkei 225, as movements there could influence the AUD/JPY’s trajectory. However, be cautious; if broader market volatility spikes, it might lead to a quick reversal. The real story is whether this bounce can hold, so monitoring the daily close above 106.00 will be crucial for confirming bullish sentiment.