AUD/JPY Price Analysis: Holds its gains amidst risk-aversion, eyeing key resistance area
- Despite Powell's hawkish comments, AUD/JPY moves upward in early Thursday trading.
- If the AUD/JPY rises, it must surpass 96.54 to expose the 97.00 level, June 20 high at 97.41, and the year's high at 97.67.
- If AUD/JPY trends lower, it will face support levels at 96.00, 95.76 (Tenkan Sen Line), and 95.57.
The AUD/JPY climbs in the early Thursday Asian session after registering modest gains on Wednesday, despite market sentiment shifting sour on remarks of Fed Chair Powell, expressing that additional rate hikes are on the table. Therefore, Wall Street finished the session on a lower note, while the risk-sensitive AUD/JPY clung to its gains of 0.47%. At the time of writing, the AUD/JPY exchanges hands at 96.43.
AUD/JPY Price Analysis: Technical outlook
The AUD/JPY is set for additional gains in the medium term after bouncing from support at the Tenkan Sen Line at 95.76. That helped the cross-currency pair to regain the 96.00 figure, extending its gains but capped by the last year's September 20 high at 96.54.
If AUD/JPY would resume its uptrend, buyers must conquer 96.54. A breach of the latter will expose the 97.00 figure, closely followed by resistance at June 20 high at 97.41m, before testing the YTD high at 97.67. On the flip side, the AUD/JPY would test the 96.00 figure. Once cleared, the Tenkan Sen line, at 95.76, would be the next floor for the pair, followed by the June 20 low of 95.57. Downside risks will emerge below that area, at the 95.00 figure, before stumbling to the Kijun-Sen line at 93.96.
AUD/JPY Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
