- If AUD/JPY fails to crack 90.00, that will pave the way for a double-top confirmation.
- For a bullish continuation for the AUD/JPY, a break above 90.00 would expose the 200-day EMA at 90.86.
The Australian Dollar (AUD) posted gains vs. the Japanese Yen (JPY) on a risk-on impulse, spurred by softer US economic data revealed during Thursday’s North American session. Therefore, high beta currencies like the AUD were bolstered by speculations that the US Federal Reserve (Fed) will hike rates again, followed by a pause—that increased investors’ appetite for riskier assets. As the Asian session begins, the AUD/JPY exchanges hand at 89.94.
AUD/JPY Price Action
The AUD/JPY recent rally from April 6 swing low at 87.50 was capped by April’s 4 daily high at 90.17. Although the cross-currency pair challenged the latter, the AUD/JPY dipped below 90.00. That depicts the formation of a “double top” chart pattern, which could exacerbate a fall toward the 2023 lows at 86.06.
Oscillator-wise, the Relative Strength Index (RSI) is in bullish territory, though shifted flat. At the same time, the Rate of Change (RoC) portrays that buying pressure in the latest rally was made on lower volatility. That said, the AUD/JPY could be set to a downward correction in the near term.
If AUD/JPY drops below the 50-day Exponential Moving Average (EMA) at 89.61, sellers would be in charge, but they will need to crack support at the 20-day EMA around 88.96. The next floor in the near term would be the 88.00 figure, followed by a test of the April 6 low at 87.59.
For a bullish continuation, the AUD/JPY might reclaim 90.00. A breach of the latter will expose the 90.17 weekly high, followed by a test of the 100-day EMA.
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
EUR/USD drops below 1.0500 amid French political jitters
EUR/USD is back in the red below 1.0500 in the European session on Wednesday. The pair trades with caution amid renewed US Dollar buying and French political uncertainty as the government faces a no-confidence vote in a busy day ahead. US data, Lagarde and Powell eyed.
GBP/USD clings to gains below 1.2700 ahead of Bailey's speech
GBP/USD is consolidating gains below 1.2700 in early European trading on Wednesday. Traders refrain from placing fresh bets ahead of speeches from BoE Governor Bailey and Fed Chair Powell later in the day. US ADP Jobs and ISM Services PMI data are also awaited.
Gold price slides below $2,640, fresh daily low ahead of Fed Chair Powell's speech
Gold price attracts some sellers following an intraday uptick to the $2,650 supply zone and hits a fresh daily low during the first half of the European session on Wednesday. The precious metal, however, remains confined in a familiar range held over the past week or so as traders seem reluctant to place aggressive directional bets ahead of Fed Chair Jerome Powell's speech.
ADP report expected to show US private sector job growth cooled in November
The ADP Employment Change report is seen showing a deceleration of job creation in the US private sector in November. The ADP report could anticipate the more relevant Nonfarm Payrolls report on Friday.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
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.