Note: The AUD/JPY forecast is updated during every weekend and take into account the various factors which are expected to affect the relative price action of the Australian dollar and Japanese yen.
AUD/JPY again moved up and touched 92.98 but then fell to 91.07 before closing for the week at 91.98.
The strong recovery from 88.24 indicates that a near-term bottom might already be in place, however the pair is against a strong resistance zone and that argues with the above outlook.
AUD/JPY had remained in a perfect sideways mode from the second week of September 2013 to the mid-January 2014. Except one brief break, the high of this range was 94.67 and excluding some brief spikes, practically the low of this range was can be taken as 91.60/91.79. The pair is once again hitting the lower end of that range but the struggle is clearly indicating a complete uncertainty. This is also clear from the following daily chart:
Our outlook stays neutral of AUD/JPY. Further gains will be expected if a decisive break above 93.20 takes place. The resistance of 93.20 is derived from the sideways price-action during December 30, 2013 to January 13, 2014. This previous support should now turn into resistance But in such case also we would expect strong resistance near 94.00. Overall we will stay neutral for the upside till the price-action does not break above 95.68.
On the downside the support near 90.60/90.62 is critical. A failure of that will turn the focus back towards downside. However a better indication of the same will come with any break below 89.83. Such a move may target 88.24 next. Any decisive break of 88.00 support will turn the focus to test the support zone of August 2013 i.e. 86.41 to 86.46.
More Resources For Trading AUD/JPY
- Daily Analysis: AUD/JPY daily analysis
- Daily resistance and support levels: AUD/JPY pivot points.
- AUD/JPY chart alerts for any alerts or specific observation about the price action.
- You may also check AUD/JPY Correlation with other currency majors.
(For Carry Trades)
Convert Australian Dollar to Yen.
This update on AUD/JPY outlook and forecast is written by the analysts of ForexAbode.com. Do contact us for any questions, suggestions or feedback.