AUD/JPY is currently trading at around 94.50 during Asian hours, after rising over 0.50% in the previous session. This currency pair is moving upwards within an ascending channel pattern, suggesting an ongoing upward trend. The 14-day Relative Strength Index (RSI) is above 50, which supports the upward momentum. The AUD/JPY pair is also above the nine-day Exponential Moving Average (EMA), indicating strong short-term momentum.

Potential Upside Targets

If the price rises, AUD/JPY could hit the upper boundary of the channel at 95.50, followed by a high of 95.75. A break above this level could take the currency to the psychological threshold of 96.00. Key support is located at the nine-day EMA of 94.26. If the price falls below this, it may target the 50-day EMA around 93.50. A further decline could break the channel’s lower boundary at approximately 93.00, leading to a potential low of 91.50. Here’s a breakdown of AUD’s percentage changes against major currencies: -0.19% against the USD, 0.19% against the EUR, and 0.31% against the GBP. The Australian Dollar has shown resilience, particularly against the US Dollar, highlighting its relative strength. What we see here is a mix of technical strength and overall market sentiment. The Australian Dollar is holding firm, especially compared to the Dollar, and to a lesser degree, the Euro and Pound. The position of AUD/JPY is on a steady upward path within the ascending channel, suggesting that buyers are gaining control.

Monitoring Support Levels

The RSI remaining above the midpoint confirms that buyers are still active. While this doesn’t guarantee future gains, it aligns with the price staying above the nine-day EMA. Together, these indicators suggest that short-term momentum remains intact. Key levels to keep an eye on: If the cross builds momentum, it may break through the channel’s top at 95.50, possibly revisiting the recent high of 95.75. Should momentum persist, the psychological level of 96.00 could become significant, as traders often pay attention to these key figures. However, even with a recent upside trend, we shouldn’t overlook the support levels. The nine-day EMA near 94.26 serves as an initial support line. A dip below this level could lead to a quick drop towards the 50-day EMA at about 93.50. This level might attract buyers looking for better value or serve as a launchpad for a new rally if buyers remain strong. If sentiment shifts or Japanese flows change, we could see the channel’s base at 93.00 come into play. Falling below this level would not only end the current trend but could also open the door for deeper losses, potentially targeting 91.50, which may shake out weaker hands. Looking at the bigger picture, the strength of the Aussie isn’t limited to this cross. Although it dipped slightly against the Dollar, the 0.19% movement is modest and doesn’t undercut the overall bullish narrative. Minor gains against the Euro and Pound indicate that this positive trend is not isolated. We’re observing a notable resilience in the Australian Dollar; its ability to hold or gain while others struggle is a positive sign. In the upcoming sessions, it will be essential to closely monitor the nearby resistance zones. If prices drop towards lower supports, we’ll need to evaluate whether this selling pressure is temporary or if a new base is forming for future gains. Create your live VT Markets account and start trading now.

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