AUD/JPY Price Analysis: Hits 13-month high, buyers eye 98.00
- AUD/JPY pair surges over 1.90% to 97.87, driven by improved risk appetite and expectations of a less aggressive US Federal Reserve.
- The cross-pair approaches a new 13-month high, eyeing the critical 98.00 level, with the potential to test last year's peak of 98.60 and the 100.00 psychological mark.
- The pair shows the uptrend is overextended, with key supports at 97.59, 96.98, and 96.83, potentially halting further advances.
The AUD/JPY extended its gains on risk appetite improvement on Tuesday, as investors speculated the US Federal Reserve wouldn’t raise rates due to a soft October inflation report. Therefore, traders seeking risks bought high-beta currencies to the detriment of the Japanese Yen's (JPY's) safe-haven status. The pair is trading at 97.87, which is a gain of more than 1.90%.
The daily chart portrays the cross-pair as upward biased after hitting a new 13-month high, shy of reclaiming the 98.00 mark, which, once cleared, could pave the way to test last year´s high of 98.60, ahead of challenging the psychological 100.00 mark.
Nevertheless, the AUD/JPY uptrend seems overextended, and in the event of a pullback, the first support would be the November 7 high at 97.59, previous resistance levels, turned support. A decisive break would expose the Tenkan-Sen at 96.98 before sliding to the July 5 high at 96.83. Once this demand zone is cleared, the next stop would be the Senkou Span A at 96.49.
AUD/JPY Price Analysis – Daily Chart
AUD/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
