AUD/JPY through the roof, tests 81 handle

The bid tone behind the AUD keeps growing bigger as we head into mid-Europe, sending AUD/JPY further north to fresh three-week highs near 81 handle.

AUD/JPY catches fresh bid

The AUD/JPY pair now jumps 1.86% to fresh three-week highs of 80.98, bouncing sharply from 79.50 region. The bulls remain relentless, helping AUD/JPY extend its bullish streak amid renewed buying interest in the AUD. Simultaneously the yen hit a fresh multi-week lows against the US dollar, bolstering the bids for the cross.

The USD/JPY pair marches higher amid ongoing yen weakness backed by increased helicopter money speculations, while the Aussie rebounds higher amid persistent risk-on market profile as oil and stock extend higher.

The immediate focus now remains on the Bank of England (BOE) rate decision, which is likely to spur massive volatility across the financial markets, eventually impacting the risk barometer, AUD/JPY.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 81.69 (post-Brexit highs) and above which it could extend gains to at 82 (round figure).To the downside immediate support might be located 78.98/86  (July 14 & 13 high) below that at 78.66 (5-DMA).