AUD/JPY Price Forecast: Uptrend intact despite dip below 111.00

The rally on the AUD/JPY was halted on Thursday as the cross-pair retreated some 0.40% during the session on broad strength of the Japanese Yen. Hawkish comments by two officials of the Bank of Japan, weighed on the pair, which trades below the 111.00 mark at the time of writing.

AUD/JPY Price Forecast: Technical outlook

The uptrend remains intact on the AUD/JPY which despite testing daily lows of 110.26, its is poised to end Thursday’s session near the highs, opening the door for further upside.

The Relative Strength Index (RSI) showed that buyers are in charge, with the index above its neutral line, but slightly tilted to the downside, an indication that traders could push the AUD/JPY to challenge the 110.00 mark.

Nevertheless, price action remains constructive as the AUD/JPY registered successive series of higher highs and higher lows. Therefore, for a bullish continuation, the pair must clear 111.00, followed by the yearly high of 111.47. Once cleared the next stop would be 112.00.

On the other hand, on further weakness, the AUD/JPY first support would be the day’s low of 110.26, followed by 110.00. Should the pair clear the latter, a drop towards the 20-day Simple Moving Average (SMA) at 109.48 is on the cards.

AUD/JPY Price Chart – Daily