AUD/JPY is falling sharply after hitting resistance at the 96.50 area!
How low can AUD/JPY go before the buyers step in again?
Here’s what we’re seeing on the 4-hour time frame:
AUD/JPY 4-hour Forex Chart by TradingView
The Aussie is finding steady(ish) demand after a not-so-dovish RBA rate cut earlier this week, a little thaw in U.S.-China trade tensions, and a surprisingly solid July jobs report a few hours ago.
But the Japanese yen’s got the upper hand right now, riding a wave of dollar weakness, safe haven flows, and a boost from U.S. Treasury Secretary Bessent urging the BOJ to hike interest rates.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/JPY started the month on a tear but ran into a wall near 96.75 before sliding sharply lower this week.
It’s now hanging out around 96.00, right on the Pivot Point at 95.90, and mid-channel support.
If it slips under that support and stays there, we could see it drop back toward the 95.00 lows or even set fresh August lows.
But if buyers step in and we get a clean bounce, the pair could be eyeing another push toward the 96.75 highs or even the 97.00 mark near the R1 at 96.90.
Whichever bias you end up trading, don’t forget to practice proper risk management and keep up with the potential top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
