AUD/JPY Price Forecast: Slips as BoJ’s Ueda signals rate hikes

The Australian Dollar retreats against the Japanese Yen on Monday, down 0.05% after Bank of Japan Governor Kazuo Ueda revealed that the BoJ would hike rates “if economic and inflation trends align with our projections.” At the time of writing, the AUD/JPY trades at 105.00 almost unchanged.

AUD/JPY Price Forecast: Technical outlook

The technical picture reveals that the uptrend in the AUD/JPY remains intact, confirmed by a rising Relative Strength Index (RSI) in convergence with price action. The RSI is at 65.20 with the slope showing signs that bulls are in charge, while the pair remains shy of cracking last year’s peak at 105.22.

If AUD/JPY clears the latter, buyers would push prices towards the July 19, 2024, cycle high at 105.77. On further strength, the next area of supply would be the July 11, 2024, peak at 109.37.

For a bearish continuation, the AUD/JPY first support would be 105.00. A breach of the latter will expose December 9 high of 104.40, ahead of 104.00. Once cleared, below lies the 103.00 figure, followed by the 50-day SMA at 102.40.

AUD/JPY Price Chart – Daily