 Good morning and welcome to the Church of the Week video with me, David Madden. Today's date is Friday the 12th of February 2021 and the time has just gone 8.49 GMT. And this week's Church of the Week is the Australian Dollar versus the Japanese Yen, or the Aussie Yen, as been referred to it. The Aussie Yen has been in a strong upper trend the last few weeks and months. As you can see here, my example of an upper trend, by a series of higher highs and higher lows. And only yesterday, the currency pair hit its highest level since December 2018. So a multi-year high was achieved, the market's moving higher. Why is this? Well, first of all, the Australian Dollar is considered to be a risk on currency in that when traders are feeling optimistic about the state of the global economy, they often tend to buy assets that are considered to be higher risk. On the flip side of that, the Japanese Yen is considered to be a risk-off currency in that whenever this time of uncertainty and stock markets are falling, you tend to see the Japanese Yen fall. So this currency pair has both elements of risk on either side of it. So if you're seeing a solid move to the upside in the Australian Dollar versus the Yen, it's clear that traders are in risk on mode because they're clearly buying a risk on currency and simultaneously selling a risk-off currency. Why is this? Optimism in relation to that, the global economy was going to rebound because of the vaccination roll-outs. And with that, the views of global economies around the world are going to be more open and less restricted, three months, six months, nine months down the line. Economic activity is likely to increase. And with that, we're seeing a strong rise in metal prices. Copper recently had an eight-year high and platinum recently had a six-year high. So they always recently hit a 13-month high. So the move Australia is a very, is a disproportionately large amount of its growth wealth comes from commodities, strong commodities, because it's a stronger Australian dollar. So we're looking at the price action here of Aussie Yen. It's a strong upward trend. We're currently trading at 81 spot 10. I think we continue to move on higher from here. We could be heading up towards the 84 direction, just north of 84 spot 02. 84 spot 02 was the highest, was the highest seen in early December 2018. If we do see any moves to the downside in Aussie Yen, where could we potentially find support? So if we move lower from here, we could find support from the 80 level just in around the lows of February. If you head below that, you could head back down towards this blue line here, the 50 moving average. Notice how it acted in both support and resistance in the last few months. That comes into play at 79 spot 49. If a metric has been important in the past, it makes more likely it'll be important in the future, although there are no guarantees. But even if you drop below the 50 moving average, support could be found from this area here from the 100 day moving average in around 77 spot 42. Once again, that area has actually had support in the past. And if you look at where the 100 day moving average is, it's not too far away from the lows of early December in a 77 spot 49. So some traders would be looking out for recent lows. All the traders would be looking out for moving averages. And a couple of those kind of price points overlap. It makes that particular price point is likely to become even more significant. So keep an eye out for these areas should we see and move to the downside. Now, if you are going to be trading the Australian dollar versus the Japanese yen or any of the Australian dollar crosses, it is worth your while finding out what the Australian dollar as a whole is doing. So we can look here on our platform under products. We can look under Forex indices. Here at CMC we have a foreign exchange indices which work in a similar fashion to stock market indices in that it's a currency that is marked against a basket of other currencies. So it's the strength of the Australian dollar versus the Japanese yen, the US dollar, the British pound, the euro, so on and so forth. And we can see here on the CMC AUD index, see how the Australian dollar is performing as a whole. Same situation. It's been a strong upward trend in the last few months. In fact, we recently pulled back from the recent highs and it's nicely been supported by its 50 moving average. So we can see Aussie yen is moving higher and we can see that the CMC AUD index is also moving higher. So the fact that the Australian dollar is gaining ground across the board makes it more likely that the Aussie yen is going to increase. If there's a deviation in those, then you become less confident that the wider upward trend is going to continue. And lastly, I mentioned copper early on and metals. If you are going to be trading the Australian dollar, it is worth your while keeping in mind what's going on in copper. We can see here the copper has been in a strong upward trend since March. We recently hit an eight-year high during the week, only on Wednesday. We've come off ever so slightly. If we do see a bit of a pullback in copper, that could lead to a scenario whereby we see a drifting off in the Australian dollar versus the yen. And should that be the case, we might even see a scenario whereby the Aussie yen moves a bit lower before potentially continuing on in the wider upward trend. So we could see a drift lower in the Aussie yen in the near term, metal fall, but keep in mind, we've been in a strong upward trend for several months. That's all from this video. Thank you for listening. Have a good trading day and have a good weekend.