AUD/JPY is our currency pair in play due to a number of high-impact economic reports out of Australia, Japan, and China this week (see “Data Highlights” below for more). Looking to the chart, rates rallied strongly last week on broad-based yen weakness. As of writing Friday afternoon, the pair is at its highest level in 18 months, and is pressing against longer-term Fibonacci retracement resistance at 101.35. Meanwhile, the MACD is showing strongly bullish momentum, though the Slow Stochastics indicator is now in overbought territory, raising the probability of a pullback. For this week, a conclusive break above 101.35 resistance would open the door for a bullish continuation higher, though rates may need to pull back and consolidate their recent gains first.