AUD/JPY Price Forecast: Double bottom puts 113.50 in bulls' sights
The AUD/JPY surges for the fourth straight day and approaches key resistance levels as bulls gather momentum, hitting a new monthly high above the October 14 daily high of 111.13. The cross-pair trades at 111.04, up 0.24%.
The Australian Dollar (AUD) has surged for the fourth consecutive day, approaching key resistance levels and forming a 'double bottom' chart pattern. The pair has climbed above the October 14 daily high of 111.13 and is now trading at 111.04, up 0.24%. A decisive break above 111.50, slightly below the 50-day Simple Moving Average (SMA) of 111.57, could open the door for a move towards the 200-day SMA at 111.76.
The next target is the 100-day SMA at 112.12. If those resistance levels are broken, bulls' next goal is the 'double bottom' measured target objective of 113.40 pips from the current level around 111.13.
The Reserve Bank of Australia (RBA) plays a significant role in AUD's movement, as Australia is a resource-rich country with Iron Ore as its largest export. The health of China, its most significant trading partner, is also a crucial factor in AUD's value. Additionally, Australian inflation, growth rate, trade balance, and market sentiment (risk-on or risk-off) are essential elements impacting the currency.
The RBA influences AUD by setting interest rates for Australian banks, which affects overall economic interest rates. When China's economy is strong, it purchases more Australian goods and services, increasing demand for AUD and pushing its value up. Conversely, negative surprises in Chinese growth data directly impact the AUD.
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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