AUD/JPY Back Into The Channel

AUD/JPY has been posting relatively mixed signals since late May as price fluctuated around 82.44. The pair consolidated around those levels with a low of 81.89 which happened to be outside the medium-term downtrend trading channel. Bears, however, couldn't sustain the momentum.

The pair is now back to the consolidation levels currently trading at 82.46, but the positive thing about the AUD bulls is that price is now back into the trading channel. This could mean that market participants might now endorse the idea to go North to first potential target at 84.00.

Should this level be reached, major bull target is seen at 85. The Australian dollar will need a lot of bull power to go to the other end of the trend. Important data is scheduled for tomorrow - RBA Interest Rate Decision (Jun) and that might give the pair certainty in direction.

Chart: AUD/JPY H4