Japanese equities are very important for Yen movements and AUDJPY is my favorite along with USDJPY. When foreign investors buy or sell Japanese equities currency-unhedged there is a positive correlation between the Yen and Japanese equities. Translated to common words it means they buy Japanese Equities using Spot rate at the time and so if JPY appreciates / depreciates then it affects the value of the investment for foreigners. So sometimes a foreign investor can buy Japanese Stocks and hedge the JPY component. Remember -Nikkei down – AJ/UJ down too.
Technically AUDJPY is contained within a bullish pennant with strong bullish advance (marked as red rectangles). As long as the pennant holds we could see rejections from the bottom within 83.40-50 zone and a potential breakout of the pennant with 84.11 and 84.45 as targets.