AUD/JPY Price Analysis: Defies downtrends as a morning star pattern, suggests upside expected
- AUD/JPY gains 1% and breaches the Tenkan-Sen line, exposing the Kijun-Sen.
- A morning star candlestick pattern signals potential AUD/JPY upside.
- The AUD/JPY could turn bearish if demand prices dive below 95.00.
AUD/JPY reversed its downtrend, and rallied sharply on Thursday, gaining more than 1%, or 106 pips, courtesy of a risk-on impulse due to cooling US inflation and a break of a technical resistance level that has turned support. As the Asian session begins, the AUD/JPY is trading at 95.08, almost flat.
AUD/JPY Price Analysis: Technical outlook
The daily chart portrays the AUD/JPY as upward biased but hovering above/below the Tenkan-Sen line at 95.04. Price action witnessed the pair bouncing slightly below the June 7 high of 93.52, a guarded area for Aussie (AUD) bulls, forming a hammer candlestick on Wednesday. That, alongside Thursday’s long bullish and Tuesday’s bearish candles, formed a three-candlestick pattern, ‘morning star,’ indicating that further upside is expected.
AUD/JPY’s next resistance emerges at the Kijun-Sen line at 95.08, followed by the October 21 daily high at 95.74. The 96.00 figure would be up next, followed by the July 4 high at 96.84, before the pair attacks the 97.00 mark.
For a bearish resumption, AUD/JPY sellers need prices to dive below 95.00 as they eye the current week’s low of 93.25.
AUD/JPY Price Action – Daily chart
