AUD/JPY Price Analysis: Hits 17-year high above 106.00 on JPY weakness
- AUD/JPY hits a 17-year peak at 106.37, following the BoJ's decision to maintain interest rates.
- Technicals indicate a strong uptrend with RSI in bullish territory; upcoming resistance at 106.50 and 107.00.
- Support levels include Tenkan-Sen at 104.98, Senkou Span A at 104.73, and Kijun-Sen at 104.49.
The Australian Dollar surged to a new 17-year high of 106.37 against the Japanese Yen as the Bank of Japan failed to increase interest rates on its latest monetary policy decision, which weighed on the Japanese currency. Therefore, the AUD/JPY rallied higher and traded at 106.22, up 0.16%.
AUD/JPY Price Analysis: Technical outlook
The AUD/JPY cross-pair uptrend remains intact, with the pair breaching the previous year-to-date (YTD) high of 104.94, which opened the door to test 105.00 and beyond. Even though momentum favors buyers with the Relative Strength Index (RSI) in bullish territory, downside risks remain due to verbal intervention by Japanese authorities.
If the JPY continued to depreciate steadily, that could pave the way for further gains. The next resistance would be the 106.50, ahead of 107.00. UP next would be the October 2007 peak at 107.86.
Conversely, if the cross-pair extends its losses past 106.00, the first support would be the Tenkan-Sen at 104.98, followed by the Senkou Span A at 104.73. Once cleared, the bull’s last line of defense would be the Kijun-Sen at 104.49.
AUD/JPY Price Action – Daily Chart
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.
