AUD/JPY rises above 79.00

An improvement in global risk appetite and rising commodity  prices boosted AUD/JPY on Monday. The pair erased earlier losses and rose above Friday’s highs .

AUD/JPY rebounds from 3-month lows

At the beginning of the week the pair dropped to 78.02, reaching the lowest level in three months. Then it rebounded and during the European session broke above 78.60 opening the doors for a test of 79.00; it rose above on American hours and recently peaked at 79.26, the highest level since last Thursday.

It was trading at 79.00/05, 60 pips above Friday’s closing price, headed toward the first daily gain after falling during the previous three days, when it lost more than 150 pips.

Risk appetite weakened the Japanese yen. The Dow Jones was up 0.+65% while the S&P 500 was gaining 0.48%, before Janet Yellen speech. Gold was moving toward daily highs, near the $1250 area and the barrel of crude oil was holding above $49.50.