AUD/JPY Price Forecast: Constructive outlook prevails, first upside barrier emerges near 106.50
The AUD/JPY cross loses ground to near 106.10 during the early Asian session on Friday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) on the intervention fears from Japanese officials.
Japanese Finance Minister Satsuki Katayama on Friday reiterated her warning that all options, including direct currency intervention, are available for dealing with recent weakness in the JPY.
On the other hand, concerns that Japanese Prime Minister Sanae Takaichi will have more leeway to implement more fiscally expansionist policies could weigh on the JPY and create a tailwind for thecross. Takaichi plans to dissolve parliament next week and call a snap parliamentary election to consolidate her power.
Technical Analysis:
In the daily chart, AUD/JPY holds well above the rising 100-day EMA at 101.52, keeping the broader bullish trend intact. The average has advanced consistently, and dips are supported while price remains above this gauge. Price sits between the upper Bollinger Band at 106.52 and the middle band at 105.21, reflecting firm buying interest near the highs. Bands have widened in recent sessions, signaling elevated momentum. RSI (14) prints 66, showing strong but not overbought momentum.
The upper Bollinger Band at 106.52 caps near-term advances. A daily close above it could unlock further gains, while failure to break would keep consolidation toward the support range at 105.21–103.90. Overall, the technical backdrop favors dip-buying within the band channel as long as the EMA slope remains higher.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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