The AUD/JPY exchange rate has been trading in a descending channel since mid-July. The medium-term descending channel pattern guided the currency pair toward November 16, 2016 low level at 78.77 a few days ago.
However, after reaching its lowest level since 2016, the pair made a U-turn north. As a result, the rate has breached both the 50– and 100-hour simple moving averages.
Everything being equal, it is likely that the Australian Dollar continues to gain strength against the Japanese Yen during the following trading sessions. The next targets for the pair could be the 200-hour SMA at 80.87.
