The AUD/JPY cross is currently experiencing volatile price movements, hovering around the mid-98.00s after reaching a monthly peak earlier this week. The Japanese Yen’s uncertainty due to domestic politics is affecting the Bank of Japan’s interest rate plans, while the Reserve Bank of Australia’s hawkish stance is providing support to the currency pair.
Technically, the AUD/JPY cross is holding above the 38.2% Fibonacci retracement level, signaling a potential extension of the recent recovery. However, mixed oscillators on the daily chart suggest caution for bullish traders, with resistance expected near the 100.00 confluence level, which includes the 200-day Simple Moving Average and the 50% Fibonacci level.
If the AUD/JPY cross breaks above the 100.00 level decisively, it could trigger a bullish rally towards the 101.00 mark and potentially test the 102.00-102.10 supply zone. On the downside, immediate support is seen at 97.45, followed by 97.00 and 96.30-96.25 levels.
Analysis Breakdown:
– AUD/JPY cross is currently stable around mid-98.00s after hitting a monthly peak.
– Japanese Yen’s volatility due to domestic politics is impacting the currency pair.
– Technical analysis shows potential for a bullish rally, with caution advised for traders.
– Key resistance at 100.00 confluence level, support at 97.45, 97.00, and 96.30-96.25 levels.
Overall, understanding the dynamics of the AUD/JPY cross can help investors make informed decisions in the forex market. By keeping an eye on key levels and technical indicators, traders can navigate the volatility and capitalize on potential opportunities for profit.