The Australian Dollar against the Japanese Yen, known as the AUD/JPY pair, experienced a slight decline on Thursday, resulting in a two-week low of 103.89. However, the pair stabilized around the 104.00 mark as the Asian session began on Friday. This movement indicated a relatively flat trend in the exchange rate.
Despite the recent losses, the technical outlook for the AUD/JPY pair suggests an upward bias. The daily chart shows that the pair has been attempting to break through the year-to-date high of 104.94. A few days ago, the pair reached a high of 104.84 but failed to sustain this level, resulting in a red finish for the session. This price action formed an ‘evening star’ pattern, indicating a potential for further downside. However, buyers managed to regain control, preventing a significant decline.
In terms of momentum, the Relative Strength Index (RSI) suggests that bulls are currently dominant in the market. The next key resistance levels to watch for the AUD/JPY pair are at 104.50 and the YTD high of 104.94. On the downside, if the pair continues to decline below the recent low of 103.89, it could target the support levels at 103.27 (Senkou Span A) and 102.42 (Kijun-Sen).
Overall, the AUD/JPY pair is currently in a consolidation phase, with a slight downward pressure observed in recent sessions. However, the technical indicators point towards a potential for further upside, with key resistance levels identified at 104.50 and 104.94. On the other hand, a break below the support levels at 103.27 and 102.42 could signal a more significant downside move for the pair.
Traders and investors will closely monitor the price action of the AUD/JPY pair in the coming sessions to determine whether the upward bias will prevail or if further losses are on the horizon. The market sentiment towards the Australian Dollar and Japanese Yen, as well as any external factors influencing their exchange rate, will play a crucial role in determining the future direction of the AUD/JPY pair.
In conclusion, while the AUD/JPY pair has recently experienced a minor decline, the technical outlook suggests a potential for further gains. Key resistance and support levels have been identified to guide traders in their decision-making process. Ultimately, market participants will closely monitor the price action and momentum of the pair to make informed trading decisions in the dynamic foreign exchange market.
