Sunday, June 23, 2024

AUD/JPY Price Analysis: Rallies and paired last week’s losses, set to assault 94.00

Must Read

The AUD/JPY trimmed last week’s losses and is gaining 2.37% in the week.
The market mood improved once US central bank chief Jerome Powell pushed against aggressive rate hikes as US equities cheered the move, closing in the green.
AUD/JPY Price Forecast: Paired last week’s losses and ready to launch a retest of the YTD high near 96.00

The Australian dollar finally rallied vs. the Japanese yen, spurred by an upbeat market mood, courtesy of the US central bank, as the Fed hiked rates 50-bps. At the same time, its Chief Jerome Powell emphasized that 75-bps are not “on the table” in subsequent meetings. At 93.80, the AUD/JPY illustrates the strength of the uptrend after rallying from 92.20s to 93.80s.

Asian equity futures to open strong amidst an upbeat sentiment

Sentiment-wise, investors’ mood is cheerful. US equities rallied, supported by Jerome Powell, and finished with gains between 2.81% and 3.41%. Meantime, Asian stock futures look set to open higher despite China’s coronavirus crisis. The Ukraine-Russia conflict appears to last longer than estimated but has taken the backseat as traders remain turned to the global central bank’s monetary policy decisions.

However, news across the wires reported the reiteration of Russia that Kyiv desire to withdraw from the negotiation process, according to Al Jazeera. Meanwhile, Euro area countries proposed a ban on Russian oil, which would be effective in six months with no gradual phase-out, as reported by Reuters.

AUD/JPY Price Forecast: Technical outlook

The AUD/JPY’s Wednesday’s price action finally broke above a 10-day old downslope resistance trendline, a signal for AUD/JPY bulls to pull the trigger and push prices higher. However, recent statements by the Japanese Minister of Finance kept investors at bay from opening fresh longs in the pair; but Fed Chair Powell gave the greenlight, pushing back against 75-bps increases. Consequently, the AUD/JPY rallied and pared last week’s gains around 93.83, Wednesday’s daily high.

With that said, the AUD/JPY remains set for a renewed test of 2022 YTD highs. The AUD/JPY first resistance would be 94.00. A breach of the latter would expose the March 28 swing high at 94.32, followed by the 95.00 figure. Once cleared, the next ceiling level would be the YTD high at 95.74.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Read More

- Advertisement -spot_img
- Advertisement - Antennas Direct - Antennas Reinvented
- Advertisement -
Latest News

PHOTO: Elderly Man Decapitated by NYC Truck Was Alleged Former Mobster ‘Tony Cakes’

An elderly man who was killed on June 12 when a truck accidentally hit him at a Brooklyn crosswalk...
- Advertisement - Yarden: ENJOY $20 OFF of $150 or more with code 20YD150

More Articles Like This

- Advertisement -spot_img
×