#AUDJPY @ 95.7820 gains strong positive traction on Wednesday and rallies to over a three-week high.

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• AUD/JPY gains strong positive traction on Wednesday and rallies to over a three-week high.

The pair currently trades last at 95.7820.

The previous day high was 95.38 while the previous day low was 94.78. The daily 38.2% Fib levels comes at 95.15, expected to provide support. Similarly, the daily 61.8% fib level is at 95.01, expected to provide support.

The AUD/JPY cross catches aggressive bids during the Asian session on Wednesday and spikes to the 95.90 region, or over a three-week high following the release of Australian consumer inflation figures.

Data from the Australian Bureau of Statistics (ABS) showed that the Consumer Price Index (CPI) inflation grew 1.2% in the third quarter from the prior quarter and the yearly rate decelerated from 6% to 5.4% during the July-September period. The readings, however, were slightly higher than consensus estimates and lifted market bets for a 25 bps lift-off by the Reserve Bank of Australia (RBA) at its next policy meeting on November 7. This, in turn, provides a strong boost to the Australian Dollar (AUD) and the AUD/JPY cross.

Apart from this, a generally positive risk tone is seen undermining the safe-haven Japanese Yen (JPY) and turns out to be another factor acting as a tailwind for the cross. That said, speculations that Japanese authorities will intervene in the FX market to combat a sustained depreciation in the JPY might hold back traders from placing aggressive bullish bets and act as a headwind for the AUD/JPY cross. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for spot prices is to the upside.

Even from a technical perspective, an intraday move above the 95.65 supply zone favours bullish traders. That said, it will still be prudent to wait for some follow-through buying beyond the 96.00 round figure before positioning for any further appreciating move. The AUD/JPY cross might then accelerate the momentum further towards the September monthly swing high, around the 96.90 region. Traders now look to the release of the Tokyo Core CPI on Friday for some meaningful impetus.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 95.83 at the time of writing. Pair opened at 95.27 and is trading with a change of 0.59 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 95.04, 50 SMA 94.69, 100 SMA @ 94.84 and 200 SMA @ 92.68.

The previous day high was 95.38 while the previous day low was 94.78. The daily 38.2% Fib levels comes at 95.15, expected to provide support. Similarly, the daily 61.8% fib level is at 95.01, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 94.91, 94.55, 94.31
• Pivot resistance is noted at 95.5, 95.74, 96.1

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