The currency pair ended 2017 with a gain over 3.0% nevertheless last week also gained more than 1.0% and is in an accumulation phase since mid-December 2017.
Last week the AUDJPY rallied with a wide range and closed near the high of the week, additionally managed to close above the previous week high, which suggests a strong bullish momentum.
The stochastic is showing a strong bullish momentum and crossed above the 50 mid line.
The currency pair held and bounced from the 61.8 Fibonacci retracement after the strong correction and is now on the road to 2017 high a key inflection point.
Expecting a downward move to a Fibonacci retracement at 86.932 on a bounce from 2017 high at 90.301 (scenario 1) however a break above 2017 high at 90.301 may trigger another bullish run up to a Fibonacci expansion at 93.203 (scenario 2).