The AUD/JPY currency pair is making gains late on Monday, rising 0.88% during the North American trading session. This upward movement comes as the pair continues to trade above the resistance trendline of a ‘falling wedge,’ a bullish chart pattern that suggests further price increases could be on the horizon.
At the time of writing, the AUD/JPY is trading at 110.64, having recovered from an earlier low of 109.86. The technical outlook indicates that the pair may target initial resistance at 111.13, the October 14 high. Beyond this level, the confluence of the 50- and 200-day Simple Moving Averages (SMA) near 111.64-111.71 could act as the next key resistance. If this area is breached, the pair could test 112.00 and the 100-day SMA at 112.19.
On the downside, the first support level is the 110.00 psychological mark. A break below this could see the pair move towards the 109.00-109.30 range, followed by 109.00 and the October 15 low of 108.64.
The Japanese Yen (JPY) is one of the world’s most traded currencies, and its value is influenced by factors such as the Bank of Japan’s policy, bond yield differentials, and risk sentiment. The BoJ’s ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate, but recent policy adjustments have provided some support. The Yen is also considered a safe-haven investment, often strengthening during market stress.