AUD/JPY PRICE ANALYSIS: CLIMBS ABOVE 97.00 AMID RISK AVERSION
- AUD/JPY's gains defy typical risk aversion impact, supported by fading expectations of BoJ policy normalization.
- Technical indicators signal bullish trend; immediate targets include 97.79, 98.00, and November 30 high at 98.10.
- Downside risks for AUD/JPY include potential supports at 96.41 (Senkou Span A), 96.14 (Senkou Span B), and the 96.00 level.
The Aussie Dollar (AUD) prints gains versus the Japanese Yen (JPY) on Monday amid a risk aversion environment, which usually is a headwind for the AUD/JPY pair. Nevertheless, Japanese data revealed during January has brushed away the chances for the Bank of Japan (BoJ) to normalize policy, meaning higher interest rates. Therefore, the AUD/JPY trades at 97.08, gains 0.27%.
From a technical perspective, the AUD/JPY turned bullish as the Chikou Span has broken above price action in the daily chart. That, alongside the exchange rate seen above, the Ichimoku Cloud (Kumo), has opened the door for further gains, though traders must regain key resistance levels on their way north.
The first supply zone would be the January 11 high of 97.79, followed by the 98.00 figure, and the November 30 mark 1t 98.10. Further upside is at 98.58, the November 15 high.
On the other hand, if sellers would like to drag prices below 97.00. Once cleared, the next support would be the Senkou Span A at 96.41, followed by the Senkow Span B at 96.14, followed by the 96.00 figure.
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