The AUD/JPY currency pair, which expresses the value of the Australian dollar in terms of the Japanese yen, has recently fallen after tepidly yet nevertheless succeeding in exceeding its 2020 high of approximately 76.50. In a recent article of mine, I suggested this was a level at which AUD/JPY was likely to correct, considering multiple factors, but most importantly that while risk sentiment was proving positive, U.S. equity volatility was indicating a greater-than-average chance of rising on the back of apparently excessive optimism.
The chart below illustrates AUD/JPY price action, using daily candlesticks. I use