AUD to JPY Forecast: Challenging the 101.82 Yearly Peak

After dropping 0.17% on Monday, the Australian Dollar strengthened against the Japanese Yen, gaining 0.39% as the pair found support near the 20-day Simple Moving Average around 100.45. Currently trading at 101.26 with a modest 0.05% advance as Asian trading resumes, AUD/JPY shows signs of renewed buying pressure heading into mid-week sessions.

Technical Analysis: Path to New Resistance

The price structure of AUD/JPY reveals a constructive setup for traders. The formation of successive higher highs and higher lows indicates bulls have the upper hand and could propel the pair toward the yearly high of 101.82. The Relative Strength Index (RSI) confirms this bullish tilt, with momentum readings showing sellers retreating. However, some caution remains warranted as the RSI approaches resistance around 67.50, suggesting we may see consolidation before the next leg higher.

Breaking through the 102.00 level would open the door to the November 7, 2024 high of 102.41, with 103.00 serving as the ultimate target for aggressive buyers. On the flip side, weakness below 101.50 would shift focus to support levels: 101.00 acts as the first floor, followed by the 20-day SMA and the psychological 100.00 mark.

Currency Strength Comparison: AUD Outperforms

This week’s performance matrix shows how the Australian Dollar stacks up against major currencies. AUD has demonstrated particular strength against the Swiss Franc, gaining 0.37%. When paired against JPY, AUD has advanced 0.20%, while also showing positive performance versus EUR (-0.02%) and GBP (-0.17%).

The broader currency landscape reveals JPY weakness against most peers, with the Japanese Yen declining 0.85% versus CAD and showing double-digit weakness across the board. This relative weakness in JPY supports the upside narrative for AUD/JPY, as the pair benefits from dual momentum: AUD strength and JPY softness.

Key Takeaway for AUD to JPY Forecast

The technical setup and currency fundamentals align bullishly for AUD/JPY to retest and potentially exceed the 101.82 yearly high. Traders should monitor the 102.00 breakout level as confirmation of sustained upside momentum.