AUD/JPY Price Analysis: Rallies above 91.00 on improved sentiment, spurred by Fed’s pause
- AUD/JPY climbs from the Kijun-Sen support line, driven by risk appetite.
- The emergence of a two-candle bullish harami pattern suggests further upside, yet resistance at the Tenkan-Sen line and May highs remain key hurdles.
- If the AUD/JPY drops to challenge support at around 91.10-91.00, followed by the Kijun-Sen line and a support trendline around 90.00.
AUD/JPY climbs after finding support around the Kijun-Sen line at 90.53, rising above the 91.00 figure, sponsored by traders’ appetite for riskier assets. Federal Reserve officials opening the door for a pause is the main reason behind the AUD/JPY uptrend. As the Asian session begins, the AUD/JPY is trading at 91.21.
AUD/JPY Price Analysis: Technical outlook
The AUD/JPY daily chart still shows the pair as neutral biased, of late clinging to the Tenkan-Sen price level. Should be said that a two-candle bullish harami pattern emerged, warranting further upside expected, but on its way north, buyers of the AUD/JPY cross-currency pair must hurdle some resistance levels.
The first would be the Tenkan-Sen line at 91.30, followed by the May 29 high at 92.01. A breach of the latter will expose the May 19 swing high at 92.35, followed by the year-to-date (YTD) high of 92.99.
Conversely, the AUD/JPY must dive below a seven-month-old downslope resistance trendline, turning support at 91.10-91.00. If AUD/JPY breaks below that area, the next support would be the Kijun-Sen line at 90.43, ahead of testing a support trendline that passed at around the 90.00 figure. Once cleared, the next support would be the top of the Ichimoku Cloud at 89.55.
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.
