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AUD/JPY Price Forecast: Rises to near 98.00 amid potential for bullish divergence

  • AUD/JPY gains ground due to a potential for momentum shift to bullish from bearish bias.
  • An emergence of a bullish sentiment is possible if the RSI rises above the 50 mark.
  • The initial support appears at the psychological level of 98.00, followed by the nine-day EMA at 97.50.

The AUD/JPY cross extends its gains for the second successive day, trading around 98.20 during the Asian hours on Monday. The 14-day Relative Strength Index (RSI) is positioned slightly below the 50 level, indicating a bearish momentum is still in play. If the RSI rises above 50, it would signal an emergence of a bullish bias.

Additionally, a review of the daily chart indicates that the nine-day Exponential Moving Average (EMA) remains below the 50-day EMA. This alignment suggests that short-term price momentum is weaker compared to the longer-term trend, signaling the potential for continued price weakness.

The initial support for the AUD/JPY cross is located at the psychological level of 98.00, followed by the nine-day EMA at 97.50. A decisive break below this level could open the gates for the currency cross to navigate the region around its four-month low of 93.59, which was recorded on September 11.

On the upside, the AUD/JPY cross could test its primary resistance near the 50-day EMA at the 98.92 level. A decisive break above this level would signal strengthening bullish momentum, potentially driving the pair toward the five-month high of 102.41, last reached on November 7.

AUD/JPY: Daily Chart

Australian Dollar PRICE Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.

 USDEURGBPJPYCADAUDNZDCHF
USD -0.16%-0.15%0.08%-0.07%-0.25%-0.27%-0.26%
EUR0.16% 0.06%0.34%0.15%0.07%-0.07%-0.06%
GBP0.15%-0.06% 0.16%0.09%0.01%-0.13%-0.12%
JPY-0.08%-0.34%-0.16% -0.15%-0.32%-0.33%-0.27%
CAD0.07%-0.15%-0.09%0.15% -0.13%-0.21%-0.21%
AUD0.25%-0.07%-0.01%0.32%0.13% -0.12%-0.14%
NZD0.27%0.07%0.13%0.33%0.21%0.12% -0.02%
CHF0.26%0.06%0.12%0.27%0.21%0.14%0.02% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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