AUD/JPY: The biggest gainer of the week

Among the most traded pairs of the currency market, the AUD/JPY was the best performer during the week. The pair gained more than 250 pips since Monday and posted the third weekly gain in a row. It was the best 5-day performance since July. 

A combination of a resilient Aussie and the ongoing decline of the Japanese yen, that accelerated the slide after the US presidential elections, gave support to the rally of AUD/JPY. 

Far from 86.00/50? 

Two weeks ago, AUD/JPY managed to consolidate above the key 80.00 handle, clearing the way to more gains. The rally continued and today the pair peaked at 84.61, the highest level since April. It pulled back afterward and it was about to end the week hovering around 84.00. 

The Aussie has been able to confirm levels on top of 82.00/50, another resistance. The next medium-term resistance could be seen between the 86.00 - 86.50 area, that capped the upside during the first and second quarter of 2016. 

The pair could correct lower taking into account that during the last two months it has risen almost 800 pips. As long as the price remains above 81.00, the trend will continue to favor the upside.