AUD/JPY is currently trading below 94.50. The nine-day EMA at 94.45 is the first support level. This currency pair remains in an upward channel and could reach a five-month high of 95.75. The 14-day RSI is just above 50, suggesting a bullish trend, although price movement around the nine-day EMA remains neutral. If the price breaks above 95.75, it may test the key psychological level of 96.00. On the other hand, if it dips below the nine-day EMA, it might aim for the 50-day EMA at 93.69. Further declines could bring it down to 93.40, which would weaken the bullish outlook.

AUD Falls Against Major Currencies

The AUD has decreased against major currencies, with the biggest drop against the Swiss Franc. Notable changes include a 0.36% decline against the US Dollar, a 0.23% decrease against the Euro, and a 0.31% drop against the Swiss Franc. The heat map displays these percentage shifts among major currencies, indicating AUD has decreased 0.23% compared to USD and 0.15% against JPY. Recent movements in AUD/JPY show some hesitation within the larger upward channel. The pair is currently just below 94.50 and is temporarily supported by the nine-day EMA at 94.45. The RSI is slightly above 50 but lacks momentum, indicating limited movement without an immediate reversal. It’s important to closely monitor price interactions around the exponential moving averages. A sustained break above the upper line of the bullish channel, especially beyond the five-month high of 95.75, could lead to a challenge at the significant level of 96.00. These targets may become more appealing if upward pressure grows alongside a rising RSI.

Monitoring Support and Resistance Levels

If the price falls below the nine-day moving average, it’s important to pay attention, especially if the next level—the 50-day EMA at 93.69—doesn’t hold against selling pressure. If that level breaks, the price could slide to 93.40—a previous support level. If that level is breached, it would likely lead to a reevaluation of market direction. In such a case, any rebound attempts might struggle to reach previous highs. The recent pullback in AUD is not limited to this pair. It has been underperforming against other major currencies too, showing a modest 0.36% loss against the US Dollar and 0.31% against the CHF. The CHF remains the strongest currency, which is clear in the cross charts. The 0.15% dip against JPY today, while mild, reflects the overall headwind facing the Aussie. Short-term flows and market sentiment are driving these movements more than macroeconomic releases. Actual price confirmation is essential for entering positions. Currently, the risk-reward balance only improves if prices convincingly break above recent highs. Until then, keeping an eye on support levels and adjusting exposure appropriately could help limit downside risk. We focus on significant levels like moving averages and key psychological lines for options hedging and position durations through mid-month. Momentum hasn’t clearly indicated a direction yet. With implied volatility stable and no strong trends, we will continue to draw insights from daily closing prices. Create your live VT Markets account and start trading now.

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