AUD/JPY is trading around 94.10, just above the nine-day EMA of 93.99. This level provides initial support, and the pair could rise to the upper limit of the upward channel at 95.20. The 14-day RSI is above 50, signaling a continued bullish trend. If the price drops below the nine-day EMA, momentum might weaken, targeting the 50-day EMA at 93.32 and the lower boundary near 92.80.

Potential Upside and Downside

If AUD/JPY breaks above the ascending channel, it could reach the three-month high of 95.65 set in May. On the other hand, if it goes below 92.80, it may drop toward the low of 91.50, which was last seen on May 1. The Australian Dollar’s performance is displayed in a heat map that shows its percentage changes against major currencies. It highlights weakness against the Swiss Franc. The heat map contrasts percentage changes of the base currency (the left column) with the quote currency (the top row), illustrating movements in major pairs. Currently, AUD/JPY is resilient just above the nine-day EMA, indicating that momentum is leaning upwards. Prices near 94.10, above 93.99, suggest a short-term upward trend, especially since the RSI remains above the 50 mark—a level that separates bullish from bearish trends. As long as it holds, we can expect more upward movement soon. The ongoing ascending price channel acts as a directional guide. As long as prices stay within this channel, the market is not ready to reverse. If the pair surpasses the channel’s upper boundary at around 95.20, it could lead to a push towards the May peak of 95.65. In that case, momentum might increase, especially if there’s a broader appetite for risk or if interest rate differences favor the Australian Dollar.

Monitoring Key Levels

We also need to watch for potential lower levels. The nine-day EMA serves as the first support. If it breaks, focus will shift to the 50-day EMA near 93.32. This drop could indicate a loss of short-term bullishness. Below that, the key support level is around 92.80, which has held previously and is important to note. If it falls below, we might see a decline towards 91.50, last seen in early May, signaling a possible shift in market sentiment. When looking at this pair against other currencies, external factors come into play. The heat map shows the Australian Dollar’s weakness against the Swiss Franc. This hints at weakening demand for the Australian Dollar in safer contexts. When investors prefer safe currencies like CHF over high-risk currencies such as AUD, it suggests a broader shift in market risk. The goal here is to respond thoughtfully rather than react impulsively to each price tick. Prices move in patterns; they cluster, test, and respond. By observing these levels and understanding how traders set stops and entries around them, we can gain insights. We should treat these zones as important areas for short-term expectations. In practice, this means timing decisions carefully. Don’t chase every move—long-term success comes from preparing scenarios around the upper and lower boundaries, managing risk in advance, and staying alert for shifts in market sentiment. Create your live VT Markets account and start trading now.

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