Why AUD/JPY is priming upside to 112.21
Technically, AUD/JPY has just broken out of a cup and handle pattern, trading above both the 20-day and 200-day moving averages — a strong confirmation of bullish momentum. Buyers are clearly in control, with higher lows supporting the uptrend and a potential move toward 112.21.
Fundamental reasons for upside:
🇦🇺 Strong Australian data: Rising employment and resilient GDP boost confidence in the Aussie.
🏗️ Commodity demand: Higher iron ore and copper prices strengthen the AUD.
💴 Weak yen sentiment: The Bank of Japan’s ultra-loose monetary policy keeps the yen under pressure.
🌍 Risk-on environment: Investors shifting toward higher-yield currencies like the AUD amid global recovery.
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