AUD/JPY has been forming higher lows connected by an ascending trend line, and it looks like this support zone is facing a strong test.
Can the uptrend resume soon?
Check out these inflection points on the 4-hour time frame:
AUD/JPY: 4-hour
AUD/JPY 4-hour Forex Chart Faster with TradingView
Stronger intervention warnings from Japanese officials triggered a sharp yen rally earlier this week, erasing most of its declines throughout April.
However, the Aussie appears to be holding its ground while hawkish expectations for the Reserve Bank of Australia (RBA) remain well-anchored.
Is the trend still our friend on AUD/JPY?
AUD/JPY has retraced to the 50% Fibonacci level around the 112.00 major psychological mark, which appears to be keeping losses in check for the time being.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Australian dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
If this holds up, the pair could set its sights back on the nearby upside targets at the swing high near R1 (114.43) then to R2 (114.97) near the 115.00 handle.
On the other hand, persistent yen strength could trigger a deeper selloff, possibly taking AUD/JPY down to the 61.8% Fib closer to the trend line support and 110.00 major psychological level. A break below this region, however, could point to a possible reversal.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
Promoted: Don’t Let Password Chaos Break Your Trading Focus.
AUD/JPY may be testing a key support region while yen intervention threats loom, but your login security shouldn’t be another risk factor on the chart. LastPass helps store and manage strong passwords for your broker, charting tools, journals, and market accounts, so you can stay focused on the setup instead of playing “Which password did I use again?”
Try LastPass for Free Today!
Disclosure: We may earn a commission from our partners if you sign up through our links, at no extra cost to you.
