empty
14.05.2025 11:28 AM
AUD/JPY. Analysis and Forecast

This image is no longer relevant

The current technical and fundamental setup for the AUD/JPY pair points to short-term pressure from the Japanese yen. However, fundamental factors favoring the Australian dollar help maintain the pair's upside potential.

The AUD/JPY pair has paused a two-day rally, retreating slightly from a new monthly high. This pullback is attributed to yen strength following comments from Bank of Japan Deputy Governor Shinichi Uchida, who emphasized the need for further monetary policy normalization through interest rate hikes, provided economic conditions and price levels improve. These remarks have put pressure on the Australian dollar, contributing to the pair's correction.

On the other hand, support for the Aussie comes from strong domestic data—namely, a higher-than-expected wage price index—as well as easing trade tensions between the U.S. and China. These developments reduce the likelihood of a sharp rate cut by the Reserve Bank of Australia (RBA), thereby supporting the Australian dollar against both the U.S. dollar and the yen.

This underlying fundamental backdrop favors the emergence of buying on dips, although some caution is warranted.

Traders are advised to closely monitor the release of Australia's key monthly employment report on Thursday. The results could serve as a major driver of the pair's next move: strong figures may propel the Australian dollar higher, while weak numbers could fuel further correction or decline.

In summary, despite the short-term pullback due to yen strength, fundamentals remain supportive of the Australian dollar.

Technical Outlook:

The pair is retreating from yesterday's upward impulse, attempting to hold above the key psychological level of 95.00. Oscillators on the daily chart remain in positive territory, suggesting that the path of least resistance for the pair is upward.

The nearest resistance lies at yesterday's high around 95.65. A break above this level would pave the way for a return to the 96.00 round number.

Any pullback toward the 100-day SMA near 94.55 can be seen as a buying opportunity.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Market fears nothing

The S&P 500 reached another all-time high, with rotation being the hallmark of the US equity market. Investors are aggressively buying up stocks that underperformed in the first half

Marek Petkovich 10:50 2025-07-11 UTC+2

What to Watch for on July 11th? A Fundamental Overview for Beginners

There are very few macroeconomic publications scheduled for Friday, but the volume is still greater than on any previous day this week. The UK will release GDP and industrial production

Paolo Greco 08:50 2025-07-11 UTC+2

GBP/USD Overview on July 11, 2025

The GBP/USD currency pair failed to consolidate above the moving average on Thursday, so the correction continues for now. Throughout Thursday, the GBP/USD pair was unable to hold above

Paolo Greco 07:15 2025-07-11 UTC+2

EUR/USD Overview on July 11, 2025

The EUR/USD currency pair spent Thursday calmly drifting lower. We continue to wait for the current correction to end and for the uptrend to resume. To be fair, this correction

Paolo Greco 07:08 2025-07-11 UTC+2

XAU/USD. Analysis and Forecast

Gold prices are maintaining positive momentum for the second consecutive day. Ongoing uncertainty surrounding U.S. President Donald Trump's trade policy and its impact on the global economy continues to weigh

Irina Yanina 19:24 2025-07-10 UTC+2

USD/CHF. Analysis and Forecast

Today, the USD/CHF pair retraced part of its decline from a new weekly low recorded during the Asian session and has temporarily paused its downward movement, stopping short

Irina Yanina 12:26 2025-07-10 UTC+2

Market dupes sellers

The split within the Federal Reserve, NVIDIA's successes, and a successful auction of 10-year US Treasury bonds allowed the S&P 500 to ignore the tariff chaos. Donald Trump announced tariffs

Marek Petkovich 12:02 2025-07-10 UTC+2

What to Watch on July 10th: Fundamental Event Overview for Beginners

Macroeconomic Report Analysis: There are very few macroeconomic publications scheduled for Thursday, and none of them are expected to be significant. So what could traders focus on today? The second

Paolo Greco 09:07 2025-07-10 UTC+2

GBP/USD Overview on July 10, 2025

On Wednesday, the GBP/USD currency pair maintained its downward movement, which is corrective in nature and could end at any moment. The price remained below the moving average line

Paolo Greco 07:26 2025-07-10 UTC+2

EUR/USD Overview on July 10, 2025

The EUR/USD currency pair continued to trade very calmly on Wednesday. The pair maintained a slight downward bias, as we've noted in all of our recent articles. However, the current

Paolo Greco 07:16 2025-07-10 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.