AUD/JPY Price Analysis: Stays firm with small gains, upbeat sentiment could fuel ascent
- AUD/JPY kicks off the week just under the 92.00 mark, leveraging positive market sentiment that favors riskier assets over safe havens like the Japanese Yen.
- The AUD/JPY technical outlook remains bullish, with indicators like the RSI and the 3-day RoC hinting at gathering momentum among buyers.
- AUD/JPY faces immediate resistance at 92.00, with the potential to challenge the YTD high of 92.99; downside support stands at the May 29 low of 91.59, with further falls potentially targeting 91.00.
AUD/JPY begins the week on the right foot, though almost unchanged as Tuesday’s Asian session begins, registering minuscule gains of 0.05%, below the 92.00 figure. An upbeat market sentiment could bolster appetite for riskier assets, leaving safe-haven assets or peers like the Japanese Yen (JPY) vulnerable to further losses.
AUD/JPY Price Analysis: Technical outlook
From a technical perspective, the AUD/JPY is upward biased. Given the fundamental backdrop with an improvement in risk appetite, further upside is expected. But on its way north, the AUD/JPY must hurdle some crucial resistance levels. Additionally, the Relative Strength Index (RSI) indicator is in bullish territory, while the 3-day Rate of Change (RoC) jumped above its prior day peak, suggesting that buyers are gathering momentum.
The AUD/JPY first resistance would be the 92.00 mark. Break above will expose the last week’s high of 92.35, followed by the 92.50 mid-point before challenging the year-to-date (YTD) high of 92.99. On the other hand, the AUD/JPY first support would be the 91.59 May 29 low. Once cleared, the AUD/JPy could dive toward one-month-old upslope support at around 91.30/91.20 before dropping toward 91.00.
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.
