AUD/JPY, the Australian Dollar to Japanese Yen currency pair, is currently trading near 103.80 during European trading hours. Despite the recent losses, the daily chart analysis suggests a bullish bias for the pair, as it remains within an ascending triangle pattern. Additionally, the momentum indicator 14-day Relative Strength Index (RSI) is above the 50 level, indicating confirmation of the bullish outlook for AUD/JPY.
In terms of potential price levels, AUD/JPY could face immediate resistance at the psychological level of 104.00. A breakthrough above this level may lead the pair to test the upper boundary of the ascending triangle around 104.80. Further upside momentum could push the cross past the key level of 105.00, aligning with the highest level of 105.04, last seen in April 2013. These levels represent significant milestones for AUD/JPY and could reinforce the current bullish sentiment.
On the downside, the 14-day Exponential Moving Average (EMA) at 103.62 is likely to act as immediate support for AUD/JPY. If the pair breaks below this level, the lower threshold of the ascending triangle around 103.50 could provide additional support. A sustained move below this key level may lead AUD/JPY towards the psychological level of 100.00 and the throwback support at 99.93. Further decline could potentially drive the pair towards April’s low of 97.78, signaling increased downward pressure.
Overall, the technical analysis of the daily chart for AUD/JPY points towards a bullish bias, with potential price targets at key levels such as 104.00, 104.80, and 105.00. However, it is essential to monitor the support levels at 103.62 and 103.50, as a break below these levels could shift the sentiment towards the downside, with possible targets at 100.00, 99.93, and 97.78. Traders and investors should keep a close eye on these levels and market developments to make informed trading decisions regarding AUD/JPY.
