- AUD/JPY grinds higher at six-week top after crossing a horizontal hurdle since late March.
- Bullish MACD, resistance break directs buyers towards the yearly peak but RSI has limited room before turning overbought.
- RBA is likely to hike the benchmark interest rate by 25 basis points (bps).
AUD/JPY edges higher around the highest levels since late April, after crossing the 2.5-month-old horizontal hurdle. That said, the cross-currency pair dribbles near 94.90 as traders prepare for the Reserve Bank of Australia’s (RBA) second rate hike, widely expected to be of 0.25%.
Also read: Reserve Bank of Australia Preview: Rate hikes are here to stay
In addition to the pair’s successful break of horizontal resistance, now support around 94.30-40, bullish MACD signals also keep AUD/JPY buyers hopeful.
However, the RSI (14) speedily approaches the overbought territory, suggesting limited upside room for the AUD/JPY prices.
Hence, the pair’s run-up beyond the yearly peak of 95.75 appears difficult, unless the RBA offers a major positive surprise.
Should the quote manage to rise past 95.75, its run-up towards the May 2015 high surrounding 97.30 can’t be ruled out.
Meanwhile, pullback moves need to break the 94.30 support to convince sellers. Even so, 50-DMA and an ascending support line from May 12, respectively around 92.10 and 91.60, could challenge the AUD/JPY bears.
Following that, the pair sellers may aim for the 90.00 psychological magnet ahead of challenging the 38.2% Fibonacci retracement of December 2021 to April 2022 upside, around 89.30.
AUD/JPY: Daily chart
Trend: Limited upside expected
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 ticks higher to 1.3025 area on softer USD, BoE rate-cut bets cap gains
GBP/USD recovers further from a two-month low, albeit the upside potential seems limited. The USD bulls opt to take some profits off the table, which, in turn, lends support to the pair. An unexpected fall in the UK inflation reaffirms bets for more BoE rate cuts and caps the GBP.
Gold captures $2,700 for first time ever, what’s next?
Gold price is sitting at the highest level on record above $2,700 early Friday, with the latest uptick led by China’s stimulus optimism and a broad-based US Dollar pullback. The focus now shifts to the Middle East geopolitical updates and Fedspeak for further trading impetus.
EUR/USD appreciates to near 1.0850 despite less-dovish sentiment surrounding the Fed
The EUR/USD pair breaks its four-day losing streak, trading around 1.0840 during the Asian session on Friday. However, the US Dollar received support and reached a two-month high of 103.87 on Thursday, supported by a solid US Retail Sales report, which fueled expectations that the Federal Reserve may implement nominal rate cuts.
Dogecoin whale activity takes a hit, will DOGE price plummet?
Dogecoin notes a drop in the count and volume of whale transactions in the last two days. On-chain data from IntoTheBlock shows that whales have likely slowed down their activity.
Retail Sales post broad advance in September
Despite worries about the financial health of the consumer and potential weakening in the labor market, U.S. retailers had a solid month in September. Control group sales rose more than twice the expected amount, pointing to stronger Q3 consumer spending.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.