AUD/JPY posts a strong bounce to end five-week losing streak

The Australian dollar has been the laggard in the FX market since the start of November but it turned around this week and was the top-performing G10 currency.

Is it a dead-cat bounce or the start of something more?

The AUD/JPY chart has some positive signs even as the fundamental risks remain high. For starters, the low last week was above the Sept and Aug lows to maintain a series of higher lows. That leaves the uptrend since the pandemic bottom intact. We've also on track for a weekly close above the prior week's high.