Forex: AUD/JPY breaking above 7-month highs; takes some breath just below 85 (Barcelona) - AUD/JPY is currently dealing with 7-month ½ highs last at 84.98, on continued Yen weakness over past 5 trading days since Japan PM Noda called for parliament dissolution and anticipated elections in the country. USD/JPY alone has surged ever since a +3%, while AUD/JPY has done a little less as Aussie is not as strong as Yen is weak.

Yen is by far, weakest currency among majors in last week. With recent levels offering resistance for the cross as 76.4% Fibo retrace of latest daily down leg 88.63/74.37 at 85.28 and support area in March, Valeria Bednarik, Chief Analyst at says: “Watching AUD/JPY breaking above 84.80 if the level holds, 86.30 is next,” the analyst notes.

For Greg McKenna, Founder at GlobalFX and former website Head of Currency Strategy at the NAB and Westpac, the outlook for the cross is also promising higher: “Looking directly at AUDJPY as you can see in the weekly chart the break out has only just begun,” Greg says, adding: “and i am targeting a test toward the downtrend line around 87.70 over the next couple of month's.”