AUD/JPY Price Forecast: Softens to near 111.00 as bearish bias holds below key technical barriers
The AUD/JPY cross trades in negative territory around 111.15 during the early European trading hours on Thursday. A coordinated currency intervention by the United States (US) and Japan provides some support to the Japanese Yen (JPY) against the Australian Dollar (AUD).
EUR/JPY declines to near 182.00 amid prevailing bearish sentiment, trading close to 182.10 in Asian hours on Thursday. The currency pair remains in a bearish outlook due to its position below the nine-day and 50-day Exponential Moving Averages (EMAs). The EUR/JPY cross is retreating from recent peaks and constrained by these overlapping EMA levels, while the 14-day Relative Strength Index (RSI) of approximately 37 denotes ongoing but not extreme downside momentum following the latest correction.
The EUR/JPY pair may revisit the earlier support level at the eight-month low of 179.37, achieved on August 3. Additional support exists at the nine-month low of 175.70. Conversely, the EUR/JPY cross could advance towards the nine-day EMA at 183.16, followed by the 50-day EMA at 184.71. Should the pair surpass these moving averages, it would signify a bullish shift and enable the currency pair to target the region around the all-time high of 187.95, previously reached on April 17.
Analysts at BNY Mellon observe that recent data indicate "growth defies gloom," with European PMIs generally surpassing expectations and countering immediate stagflation concerns. However, they caution that while this resilience is beneficial, it does not constitute a clear signal for the ECB to tighten monetary policy again, emphasizing that "another hike risks transforming a nascent recovery into a policy-induced slowdown" for the Eurozone economy and regional assets.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
