This article has been translated from English to Gen Z Slang.

Yo, trend chasers! Gather 'round! 🌟

AUD/JPY's recent dip got all eyes on a HUGE zone for those AUD/JPY stans.

Think the pair's gonna bounce back from here or what? 🤔

AUD/JPY: 4-hour

AUD/JPY 4-hour Forex

AUD/JPY 4-hour Forex Chart by TradingView

So, late last week, Japan and US were flexing about currency stuff and everybody ran back to the yen.

USD/JPY was in the hot seat, but crosses like AUD/JPY also got slapped, even though the Aussie dollar was vibin' a bit from gold making record highs near $5k. 💰

But that was so last week. With no more officials yapping and everyone looking at new moves, peeps might ditch those intervention fears and pump up the AUD/JPY uptrend again.

Just a heads up, price movements are usually vibing with fundamentals. If you're still clueless about the Australian dollar and the Japanese yen, get your act together and hit up the economic calendar and peep that daily news feed!

AUD/JPY has been grinding higher since mid-November, but just took a breather from 109.00 and is chilling around the 106.50 to 106.75 zone.

As you can see, this area is where the 61.8% Fibonacci retracement of last week's bounce aligns and it’s near the 4-hour chart's 100 SMA and the base of the ascending channel.

If it stays lit above 106.50, AUD/JPY might solidify and aim back at the previous 109.00 highs, setting its sights on the psychological 110.00 level next.

But if the price dips below the 100 SMA and the 106.00 zone, it's probably gonna fuel the bearish vibes and head lower to the 105.00 to 105.50 hotspot.

No matter how you're feeling about this trade, make sure you're using solid risk management and keep an eye on those big events that could shake up the market vibes!

Disclaimer:
Just so you know, all this technical analysis stuff is for your info and learning only. Don't treat it as trading advice or any specific bias suggestion. Technical analysis is just one piece of your trading puzzle. The setups mentioned target potential spots that traders might check out. At the end, any trading decisions, risk gyms, and their outcomes are totally on you. Trade wise! 🙌

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