erdrive on Tuesday. At current levels just to the north of the psychologically important 90.00 mark, AUD/JPY is trading at four and a half year highs with gains of about 2.0% on the day, putting it on course for its best one-day performance since November 2020. That was the day the successful Pfizer Covid-19 vaccine trial data was announced.
AUD/JPY now trades a massive more than 6.5% above its lows from just one week ago in the 84.50 area and its on-the-month gains stand at roughly 8.0%. That means, with seven full trading session of the month left, the pair is on course to post its largest percentage one-month gain since October 2011, more than a decade ago.
But importantly, AUD/JPY is yet to crack above a key high from 2017 in the 90.30 area and there is another key long-term high in the 90.75 area just above it. Failure to break above these levels swiftly in the coming sessions might signal some, at this point, much overdue profit-taking.
The recent move higher in global yields is also looking a little stretched and rates strategists have been warning to expect some consolidation, albeit still at higher levels, ahead. That would remove another key tailwind for the pair. However, amid intense speculation about an upcoming hawkish pivot from the