Weekly FX Outlook: AUD/USD and USD/JPY Present Trading Opportunities

Currency markets are presenting multiple trading opportunities as technical setups align with fundamental catalysts across major pairs. AUD/USD has declined 1.2% to 0.6480, pressured by disappointing Chinese economic data and RBA's pause in hiking cycle, with the pair approaching critical support at 0.6450. USD/JPY maintains its upward trajectory near 151.80, supported by the wide US-Japan yield differential, though intervention risks cap immediate upside potential. USD/CHF shows bullish momentum above 0.8900, while USD/CAD benefits from oil weakness to test 1.4000 resistance. Technical indicators across these pairs suggest the US Dollar's medium-term uptrend remains intact, with the DXY consolidating gains near 106.70. Key events this week include Australian employment data, Japanese CPI, and Canadian retail sales, which could trigger breakouts from current ranges. Risk management remains crucial as year-end flows may create unexpected volatility spikes.