- The AUD/JPY is getting pushed back down into consolidation, slipping back beneath 95.00.
- The Yen is seeing a resurgence across the board on newfound strength.
- The Aussie is seeing recent gains get pared back heading into the end of the week.
The AUD/JPY is seeing downside for Friday as the Yen (JPY) catches a late bid to close out the trading week.
The Aussie (AUD) caught a mid-week bid after Australian inflation ticked higher than expected, pushing the Reserve Bank of Australia (RBA) closer towards additional rate hikes heading into the end of the year, but topside action for the AUD remains limited as the JPY finds some newfound strength.
Japanese inflation improved for October, with the annualized Tokyo Consumer Price Index (CPI) print early Friday coming in at 3.3% versus the previous month's 2.8%, largely owing to increasing energy prices.
Tokyo CPI excluding food and energy prices declined, albeit slightly, to 3.8% from the previous period's 3.9%, which itself was revised upwards from 3.8%.
AUD/JPY traders will be looking ahead to Monday's Aussie and Japan data readings, with Australian Retail Sales (forecast 0.3%, previous 0.2%) early, followed later in the day by Japanese Unemployment Rate (forecast 2.6%, previous 2.7%).
AUD/JPY Technical Outlook
Friday's decline for the Aussie sees the AUD/JPY pushing straight back into the 50-day Simple Moving Average (SMA) as the pair struggles to find momentum in the medium term; long-term support sits at the 200-day SMA just below 93.00 while the current ceiling on any bullish moves sits at late September's high near the 97.00 handle.
The Aussie is still up over 10% from 2023's lows against the beleaguered Yen, but a rebounding JPY could see the AUD/JPY set for a bearish trend formation.
AUD/JPY Daily Chart
AUD/JPY Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD tepid as UK election results poised to match early polls, US NFP looms ahead
GBP/USD traded in a tight range on Thursday as Cable traders await final results from the UK’s Parliamentary Election, and markets gear up for a fresh round of US Nonfarm Payrolls slated for Friday. US markets were dark on Thursday, crimping overall market flows during the American trading window, but are slated to return on Friday.
AUD/USD holds its ground, markets eye key NFPs from the US from June
The Australian Dollar held its ground against the USD, maintaining itself in highs since January. This is despite the weaker-than-expected Trade Surplus figures reported during the Asian session as the USD remains weak following Wednesday’s set of soft economic figures reported.
Gold price consolidates amid choppy trading ahead US NFP
Gold price edge up 0.15% amid thin trading on US Independence Day. XAU/USD reached a two-week high of $2,365 Wednesday, driven by weak US jobs data and heightened Fed rate cut expectations. Traders shift focus to Friday's NFP report.
Ethereum bears gain momentum after ETH breaches key support level
Ethereum is down more than 5% on Thursday following the US SEC failure to approve ETH ETF issuers' S-1 drafts. Meanwhile, the recent decline has strengthened the bearish outlook after ETH moved below a key support level, sparking $90 million in long liquidations.
Labour wins a landslide, as Pound is unconcerned by Starmer government
What a difference five years makes, Labour have turned themselves around and are on course to win 410 seats and a 170-seat majority, according to the exit polls conducted by the main UK broadcasters.