AUD/JPY nears a big technical levels

87.37 is the inverse head and shoulder neckline and 87.64 is the 50% Fibonacci retracement of 2014 high and 2016 low. A break above 87.64 looks likely if we take into account a nice rebound from the weekly 50-MA and the rising bottom formation.

A bullish break in the AUD/JPY could mean risk-on rally in equities!  But there is other side as well – Yen is a sitting duck for bears as the BoJ is hell bent on running the yield curve control. Every time the global bond yields rise… its a clear cut sell opportunity for the Yen. A BoC rate hike this week would only boost speculation of rate hike in NZ and Australia. So AUD/JPY may break higher, but may not necessarily be a positive sign for equities…

Weekly chartAUDJPY W1 (07-11-2017 1333).png

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