News & Analysis / Analysis / AUD/JPY Analysis: Rate Falls to Important Support

AUD/JPY Analysis: Rate Falls to Important Support

FXOpen

This morning, the AUD/JPY rate dropped below 95.2 yen per Australian dollar for the first time since late October.

The weakening of the AUD was contributed by:
→ negative news regarding the Chinese economy. The Hang Seng Index set its 2023 low yesterday;
→ Australian GDP data published yesterday, which is growing at a weaker-than-expected pace.

And the strengthening of the yen occurs against the backdrop of expectations of an increase in interest rates in Japan, which intensified according to the statement of the head of the Bank of Japan. Kazuo Ueda said yesterday the central bank has several options for targeting interest rates once it gets short-term borrowing costs out of negative territory.

At the same time, the AUD/JPY chart shows that:
→ the rate has reached important support from the lower border of the channel shown in blue;
→ the rate has broken through the level of 96.25, and now the level may act as resistance;
→ RSI dropped into the extreme oversold zone. This increases the temptation for bears to take profits.

Given these factors, it is reasonable to assume that the market is vulnerable to a short-term bullish correction after a strong downward impulse. However, if the current fundamental background does not change, it is possible that the strengthening yen will break through important support in the pair against AUD in December (which is also true for other currencies).

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.03961
1.03963
Trade
GBPUSD
1.24526
1.24527
Trade
AUDUSD
0.62826
0.62830
Trade
USDJPY
154.257
154.258
Trade
USDCAD
1.42953
1.42962
Trade
More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis

USD/JPY Exchange Rate Recovers from Yearly Low

As shown on the USD/JPY chart, today the exchange rate aggressively surged above the 153 yen per US dollar level. This marks a strong recovery from the yearly low of around 151 yen per dollar, set last week.

Today's

Shares

Coca-Cola (KO) Stock Surges Nearly 5% in a Day

Yesterday, shares of The Coca-Cola Company (KO) saw a significant rally, climbing nearly 5% and reaching a yearly high above $67. The last time KO stock traded at this level was in late October 2024. Investor optimism was fueled by

Forex Analysis

Market Focus: Key Inflation Data and Fed Policy Signals

The January employment report, published last Friday, was met with a lukewarm reaction from market participants. The number of new jobs in the US for January fell short of expectations (143K vs 169K). On the positive side, the unemployment rate

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.