July 14, 2023 3:27 AM

AUD/JPY Price Forecast: defies downtrends, implying upside expected

AUD/JPY Price Forecast: defies downtrends, implying upside expected

The AUD/JPY pair reversed its downward trend and rebounded significantly on Thursday, gaining more than 1%, or 106 pips, thanks to a risk-on impetus caused by lowering US inflation and a break of a technical resistance level that has now turned support. As the Asian session opens, the AUD/JPY is trading practically flat at 95.08.

Technical Analysis of the AUD/JPY Exchange Rate

The AUD/JPY is upward-oriented on the daily chart, although it is lingering above/below the Tenkan-Sen line at 95.04. On Wednesday, the pair formed a hammer candlestick after bouncing just below the June 7 high of 93.52, a key level for Aussie (AUD) bulls. This, coupled with the lengthy bullish candle on Thursday and the bearish candle on Tuesday, produced a three-candlestick pattern known as a morning star,' signaling that additional upward is predicted.

The next level of resistance for the AUD/JPY is the Kijun-Sen line at 95.08, followed by the October 21 daily high at 95.74. The 96.00 level would be reached next, followed by the July 4 high of 96.84, before the duo targets the 97.00 level.

AUD/JPY sellers require prices to go below 95.00 in order to target the current week's low of 93.25.

Price Action AUD/JPY - Daily Chart