AUD/JPY Trading Near 97.00 After Bullish Run – Market Analysis
The AUD/JPY pair is showing signs of indecision near the 97.00 mark in Friday’s European session, after a three-day winning streak. The recent rise in the Australian Dollar can be attributed to improved market sentiment and hawkish interest rate guidance from RBA’s Bullock. On the other hand, concerns over BoJ tightening policies have limited the Yen’s strength.
Positive data like lower US Initial Jobless Claims and higher China’s CPI have boosted risk appetite, while BoJ’s stance on rate hikes has eased pressure on the Yen. RBA’s Bullock’s comments on inflation risks and potential rate hikes have supported the AUD’s appeal.
Looking ahead, the Q2 Wage Price Index data will play a crucial role in determining the AUD’s next move. The currency’s performance will impact consumer spending and inflationary pressures.
Technical analysis shows the AUD/JPY in an Ascending Triangle pattern on the hourly chart, with support at the 50-hour EMA near 96.40. A break above 98.00 could lead to further gains, while a drop below 95.00 may expose lower levels.
In conclusion, the AUD/JPY’s current trading behavior reflects a mix of market sentiment, economic data, and central bank policies. Investors should closely monitor upcoming events and data releases to make informed decisions about their trading strategies.
