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  • AUD/JPY hits multi-month highs on US stimulus. 
  • The pair eyes key SMA hurdle, as the weekly chart favors a continued rally.

Buoyed at least in part by President Trump’s signing of the coronavirus stimulus package, AUD/JPY reached 20-month highs on Monday. 

The currency pair traded at 78.88, the highest level since late April 2019, having picked up a bid at 78.54 in early Asia. 

According to the last week’s bullish hammer candle, the path of least resistance is to the higher side. The above-50 readings on the daily and weekly chart relative strength indices also indicate a bullish bias. 

The immediate resistance is located at 79.12 (200-week Simple Moving Average), followed by 80.72 (April 2019 high). Meanwhile, 77.49 (last week’s low) is the level to beat for the sellers. 

Weekly chart

Trend: Bullish

Technical levels