Price analysis for the AUD/JPY currency pair: Rallies over 91.00 due to improving mood
As traders' demand for riskier assets increases, the AUD/JPY rises over the 91.00 mark after finding support at the Kijun-Sen line at 90.53. The key driver of the AUD/JPY rise is Federal Reserve policymakers allowing for a pause. The AUD/JPY is trading at 91.21 as the Asian trading day gets underway.
Price analysis for the AUD/JPY: Technical outlook
On the daily chart of the AUD/JPY, the pair continues to be neutrally inclined and has recently clung around the Tenkan-Sen price level. It should be noted that a two-candle bullish pattern formed, which calls for additional gains to be anticipated. However, for the AUD/JPY cross-currency pair to move north, buyers must first overcome a few resistance levels.
Tenkan-Sen line at 91.30 would come first, then the high from May 29 at 92.01. If the latter is broken, the year-to-date (YTD) high of 92.99 will be revealed, followed by the swing high of May 19 at 92.35.
In contrast, a seven-month-old downslope resistance trendline that becomes support at 91.10-91.00 must be broken by the AUD/JPY. The Kijun-Sen line at 90.43 would be the next support level if the AUD/JPY crosses below that level, and then it would test a support trendline that crossed at about the 90.00 mark. The top of the Ichimoku Cloud at 89.55 would serve as the next support after it has been broken.