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The AUD/JPY cross is trading near 111.80 as the Australian Dollar gains strength against the Japanese Yen. This upward movement is driven by China's unexpectedly large trade surplus in early 2026, fueled by a sharp rise in exports. Technical indicators show the pair has broken above its 100-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) signals bullish momentum. Traders are closely monitoring this level as a potential catalyst for further gains. The surge in China's trade surplus highlights the resilience of commodity-linked currencies like the AUD, which benefits from increased global demand for raw materials. The Yen, traditionally a safe-haven currency, is under pressure as risk-on sentiment grows. This dynamic could attract forex traders seeking exposure to AUD/JPY, particularly those leveraging technical strategies around key moving averages and RSI levels. For investors, the 100-day EMA acts as a critical support/resistance level. A sustained break above 111.80 could target 113.00, while a pullback below 110.50 might trigger short-term volatility. Market participants should also watch for follow-through volume and China's next trade data release, which could reinforce or reverse the current trend.
