AUD/JPY has soared since non-farm payrolls
In the minutes after non-farm payrolls, I highlighted AUD/JPY as the trade that could be the winner on the combination of great jobs growth and low wage growth.
So far, that's been the case as the pair jumped about 110 pips on the day 83.85. It's a rare victory for this pain that has mostly languished in the past six months. This is the best one-day gain since July.
Technically, it's a fascinating chart.
It bounced almost precisely off the 2016 lows and that's a positive signal but in the shorter-term, the break of the November low is still the defining feature on the chart. The latest move looks like a retracement and a likely retest of that low but if it can get above 84.35, the gains could accelerate.
In the immediate term, the momentum is likely to take it to at least a strong test of that level.