AUD/JPY Nears 94.40 But May Struggle to Go Higher
The AUD/JPY pair has moved up again and is now trading close to the 94.35–94.40 resistance level. It rose slightly today, but the pair remains within a tight range because of mixed signals in the market.
The Australian Dollar got a small boost from the weaker US Dollar. Also, China kept its main lending rate steady, which supported the Aussie since China is a key trade partner for Australia. On the other side, the Japanese Yen remains weak, as traders believe the Bank of Japan may not raise interest rates soon, even though Japan’s inflation stayed above 2% in May.
However, there are signs of weakness in the Australian economy. The latest jobs data was disappointing, which could increase chances that the Reserve Bank of Australia might cut interest rates in July. This makes the Australian Dollar less attractive and limits the chances for AUD/JPY to rise further.
Right now, 94.40 is acting as a resistance level. If the pair breaks above it, more gains could follow. But if it fails to stay above that level, it could fall back toward the 93.80 support zone.
Impact: AUD/JPY might stay strong if global market sentiment remains positive. But weak Australian data or rate cut expectations could possibly push the pair down again.