AUD/JPY Stabilizes Near 106.00 Amid Eased Intervention Concerns
The AUD/JPY currency pair has stabilized around 106.00, following a period of volatility influenced by intervention speculations in the foreign exchange markets aimed at supporting the Japanese Yen. After experiencing consecutive declines, the pair has managed to recover slightly, currently trading at approximately 106.61, a position that reflects its resistance to further downturns.
AUD/JPY Technical Outlook
The technical analysis suggests an upward bias for the AUD/JPY, despite encountering resistance at the upper limit of its prevailing uptrend channel around 109.00. The recent intervention threats instigated a significant sell-off, causing the pair to dip to a low of 106.08, a drop of nearly 300 pips.
Indicators and Price Movement
The Relative Strength Index (RSI) has shown signs of recovery but remains in a bullish trend. However, with the RSI’s slope flattening, traders may anticipate sideways price movements before a potential resumption of the upward trend.
- For continued bullish momentum, the AUD/JPY must exceed the January 26 peak of 107.59.
- Upon breaking this barrier, the next targets would be 108.00 and 109.00, which represent year-to-date highs.
- If the pair retreats below 103.00, it may encounter support at 105.22, followed by a further decline towards 105.00.
- Additional support could be found at the December 9 high, now at 104.40.
Weekly AUD Performance Against Major Currencies
The following table outlines the percentage changes of the Australian Dollar (AUD) against various major currencies over the past week, indicating its strongest performance against the US Dollar.
| Currency | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| USD | -1.32% | -1.25% | -1.30% | -0.85% | -1.13% | -1.33% | -1.57% | |
| EUR | 1.32% | 0.07% | 0.06% | 0.48% | 0.20% | 0.00% | -0.24% | |
| GBP | 1.25% | -0.07% | -0.38% | 0.42% | 0.12% | -0.07% | -0.32% | |
| JPY | 1.30% | -0.06% | 0.38% | 0.47% | 0.18% | 0.02% | -0.25% | |
| CAD | 0.85% | -0.48% | -0.42% | -0.47% | -0.41% | -0.45% | -0.73% | |
| AUD | 1.13% | -0.20% | -0.12% | -0.18% | 0.41% | -0.20% | -0.44% | |
| NZD | 1.33% | -0.01% | 0.07% | -0.02% | 0.45% | 0.20% | -0.25% | |
| CHF | 1.57% | 0.24% | 0.32% | 0.25% | 0.73% | 0.44% | 0.25% |
In summary, the AUD/JPY has stabilized near 106.00 amid reduced concerns over intervention, while technical indicators suggest a cautious but potential recovery ahead.
