AUD/JPY has surged higher after completing a major base and bullish continuation pattern above 86.26. Economists at Credit Suisse expect the pair to reach the 105.45 high of 2013 on a long-term basis.

Scope for further significant gains

“We still see scope for further significant gains and look for a test of 95.69 next, the 78.6% retracement of the fall from the 2013 high. With the May 2015 high not far above at 97.30, we would expect a cap here at first for a consolidation phase to unwind the overbought condition.”

“Big picture, an eventual break above 97.30 should see strength extend to 101.50. On a long-term basis though, we believe strength could extend to the 105.45 high of 2013 and probably higher.”