The Australian dollar has actually hit a fresh new high against the Japanese yen as we have cleared the 114 level. I am bullish of this pair and I do think short-term pullbacks will continue to offer buying opportunities, not only due to the interest rate differential but the fact that this is a bit of a commodity play and of course, a play on the fact that Australia is one of the few central banks around the world that has actually raised rates recently.

Ultimately, I do think that we go looking to a much higher level, perhaps 118 yen. That is a longer-term thought, that is not anything we are going to see in the next few days, but I like owning this pair.

GBP/JPY Technical Analysis