AUD/JPY climbs further to 78.65 on Japan stimulus prospects

The AUD/JPY cross is seen consolidating near three-week highs as sentiment around the yen remains poor amid hopes of further stimulus from Japan.

AUD/JPY eyes 79 handle

The AUD/JPY pair now jumps 1.39% to 78.53, easing-off a new three-week high printed at 78.63 in the last hour. The bulls remains in complete control and keep the three-day winning streak intact, mainly driven by aggressive yen selling on increased expectations that the extra economic stimulus package will be announced later today.

Additionally, a rebound staged by the AUD/USD pair amid higher oil prices and upbeat NAB business confidence data, further strengthens the AUD/JPY rally. Looking ahead, markets now eagerly await the Japanese press conference scheduled at 08.30 London time, for fresh announcement on the economic package.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 79 (round figure) and above which it could extend gains to at 79.59 (daily R3).To the downside immediate support might be located 78  (resistance-turned support) below that at 77.22 (daily low).