The AUDJPY cross has been on the run recently, and it is up more than 300 pips in two weeks. On Thursday, it was trading 0.8% higher, rising above 84 for the first time since July.
As both the main currency pairs - AUDUSD and USDJPY - have been rallying recently, the AUDJPY cross has just loved it and soared higher.
It is currently testing the first selling zone near 84.20, where previous lows and highs are converged. Should the price move beyond that level, the next target will likely be near the 85 area.
Alternatively, supports are hard to find in a vertical environment. Therefore, it is likely that we will see a correction of this sharp upside move. It looks like the notable demand zone could be near 83, where the cross had been bought a couple of times previously.
Sentiment remains positive as USDJPY is the only USD pair supported by rising yields, while other major pairs have seen a notable USD weakness, following yesterday's US inflation data. Therefore, the AUDJPY cross could continue moving higher, although it looks way overbought now, implying a possible short-term correction.
AUDJPY Daily chart, 3:15 PM CET