AUD/JPY Price Analysis: Retreats from weekly highs around 91.00, as bulls prepare an assault towards 93.00
|- The AUD/JPY is recording gains of 0.17% during the week.
- Despite an upbeat market sentiment, the AUD/JPY failed to break above crucial resistance above 91.72.
- AUD/JPY Price Forecast: Range-bound in a congestion area, preceded by an uptrend; an upward break looms.
The AUD/JPY barely moves as the Asian Pacific session begins, though on Thursday ended recording minimal losses, despite an upbeat market mood, mainly ignored by FX traders, as the sentiment in the FX complex was mixed. At 90.25, the AUD/JPY posts minimal gains of 0.08%.
US equities finished with gains, between 1.61% and 2.68%, eyeing to end the week on a higher note. Meanwhile, Asian stock indexes are poised for a higher open. Now that the Federal Reserve has released its May Meeting Minutes, investors have become more confident that Fed officials have set the pace of rate hikes, as Fed speakers expressed since May 5.
AUD/JPY Price Forecast: Technical outlook
Turning to Price action, the AUD/JPY has failed to reclaim above the 50-day moving average (DMA) at 91.72, and the cross-currency weekly high is the May 23 daily peak at 91.04. AUD/JPY traders need to be aware that the pair is consolidating in the 89.08-91.15 range, but market mood and the lack of a catalyst keep the pair range-bound. Nevertheless, the previously-mentioned congestion area is preceded by an uptrend, meaning that an upside break would aim towards the measured distance of the high-low of that range, being 93.20, the measured target, short of the May 5 swing low at 94.02.
However, if that scenario is about to play out, as of today, the AUD/JPY’s first resistance would be the May 23 daily high at 91.04. Break above would expose the 50-DMA at 91.72. Once that supply zone is cleared, there’s nothing on the way up to the measured 93.20 targets.
Key Technical Levels
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