Nasdaq 100 and AUD/JPY signal strong risk-on momentum

The NASDAQ100 has staged a strong rebound after completing an ABC corrective decline, suggesting that the broader uptrend has resumed. The impulsive recovery indicates that buyers are back in control, increasing the probability of a move toward fresh all-time highs. Any near-term weakness should therefore be viewed as a temporary pullback within the prevailing bullish trend rather than the start of a larger reversal.

The same risk-on message is coming from the AUDJPY chart. The pair appears to have completed a five-wave impulse into wave C of an ABC zigzag correction, indicating that bulls may be ready to regain control. A sustained break back above the 113.00 bullish confirmation level would strengthen the bullish outlook and open the door for a rally toward the June highs. However, some short-term consolidation or a pullback cannot be ruled out before the next leg higher.

As highlighted in previous analyses, XXXJPY cross pairs have remained one of the best leading indicators for global risk sentiment. As long as these crosses continue to hold their bullish structure, they support the view that equities can continue trending higher. With both NASDAQ100 and AUDJPY sending the same message, the technical outlook continues to favor a risk-on environment and higher prices in the weeks ahead.