A technical analysis of the AUD/JPY currency pair suggests a bullish setup may be forming following a recent pullback, with a resistance zone of 113.44–113.50 eyed as the next potential target.
According to the analysis, the Australian dollar-yen exchange rate has retraced from recent highs but remains within a broader uptrend. The study indicates that if support around the 112.00 region holds, the pair could attempt to reclaim the 113.44–113.50 area, a zone previously tested in late 2023. The analysis highlights a series of higher lows and a rising trendline as key structural elements underpinning the outlook.
The Australian dollar has shown resilience against the yen in recent sessions, with the pair trading near 112.40 at the time of the analysis. The yen’s recent strength has contributed to the pullback, though the broader trend remains constructive. The analysis notes that a sustained break above 113.50 would open the door to further gains toward the 114.00 psychological level, while a decisive break below 112.00 could negate the bullish scenario.
The technical study relies on daily and 4-hour chart patterns, with the analysis emphasizing the importance of volume confirmation in any potential breakout. Traders are advised to monitor the 112.00 support and 113.44–113.50 resistance zones for decisive price action, as these levels are expected to dictate the pair’s near-term direction.
