On the back of higher metal prices and a buoyant equity market (risk on), the Australian Dollar has rallied versus the “risk off” Japanese Yen.
On a one-month view, the price is up from 85.31 to the most recent peak of 89.12.
Technically, the price is trading at overhead resistance while the RSI (Relative Strength Index) is starting to showing signs of weakness as it trades in overbought territory. Today the price is re-testing the highs with the candle structure showing sellers starting to emerge.
With this in mind, traders could look to take a short/sell position in AUDJPY.
These are the trade levels:
Short/Sell AUDJPY at 88.50/88.80
Take profit: 87.20