Market Heat: AUD/JPY Roars Back as Yen Loses Grip
The AUD/JPY pair is climbing again after hitting a multi-week low, now trading close to 95.80. The main reason behind this recovery is the broad weakness in the Japanese Yen across the market.
The Japanese yen has been under pressure due to growing political uncertainty in Japan. At the same time, the Australian dollar is gaining support, even though Australia recently saw weaker job data and rising talks of a possible interest rate cut by the Reserve Bank of Australia (RBA).
Another key reason for the Aussie’s strength is the return of risk-on sentiment in global markets. As investors move away from safe-haven currencies like the yen and shift towards higher-yielding currencies, AUD/JPY is getting a boost.
However, the pair is still facing some resistance. Hopes for a positive US-Japan trade deal are helping limit yen losses and holding back a stronger AUD/JPY rally.
On the technical side, 95.80 is an important support level. If the price stays above this, the pair could rise toward the 96.30–96.80 range. But traders are still careful, as the pair has struggled to break past the mid-96 levels in recent sessions.
Impact :
AUD/JPY could continue rising if risk appetite stays strong and yen weakness continues. However, trade deal updates or RBA policy shifts might slow down further gains.
