After a wave of decline in the Australian dollar against the Japanese yen during a period of about two and a half years from September 2017 to March 2020. We began to notice an upward correction wave on the daily frame, during which the price of the Australian dollar crossed the AUDJPY levels, during which the Fibonacci levels were 38.2%, 50% and 61.8% within less than General, to remain in front of 78.6%, until it confirms the reversal of the recent bearish trend, with a long-term bullish wave that will be confirmed when breaching 84.00 levels.
But the fulfillment of this hypothesis depends on a major and important factor, which is the continued decline of the US dollar against other major currencies. In addition to the continued optimistic outlook in controlling the market, weakening the demand for the Japanese yen, especially as it is considered a safe haven currency to be resorted to in periods of fear and uncertainty.
As for the return of fears again, along with the US dollar announcing a bullish state, this will negatively affect the movement of the AUDJPY pair, and then we may find support 75.95 looming on the horizon, indicating the beginning of the failure of the correction to form a new direction.
In the medium term, the outlook is not much different, and we find the Australian Yen AUDJPY started trading in a bullish channel, and surpassed the SMA 50 and 100 over the four hour period. With the positive momentum in the price and the weakening of the Japanese Yen, the gains may continue towards testing 82.00 levels and maybe even 82.82. However, the positive outlook will diminish by breaking the 80.00 support.