AUD/JPY Price Forecast: Retakes 110.00 on upbeat China GDP; upside seems limited
The AUD/JPY cross attracts some follow-through buyers for the second straight day on Monday, recovering further from an eight-month low, around the 108.65-108.60 region, touched last week.
The AUD/JPY cross made a notable recovery on Monday, breaking above the 110.00 psychological level amid positive factors. Australia's Reserve Bank of Australia (RBA) Assistant Governor Chris Kent delivered hawkish remarks, providing a minor boost to the Australian Dollar (AUD). Meanwhile, China's economy outperformed expectations, with a 4.5% year-on-year growth in the third quarter, offering a tailwind for the AUD/JPY pair.
However, the Japanese Yen (JPY) faced pressure from cautious Bank of Japan (BoJ) expectations, contributing to the AUD/JPY cross's upward movement. Despite this, traders remain cautious, as Japanese authorities may intervene to support their domestic currency. Technical analysis indicates a bearish near-term bias, with the pair trading below the 200-period Simple Moving Average (SMA) and vulnerable to further testing of the 38.2% retracement level at 110.17.
The next significant hurdle lies at the 50.0% retracement at 110.63, with the 200-period SMA acting as a potential barrier at 110.93. Should the pair break below 109.59, it could expose the recent low of 108.66 as the primary bearish target.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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