AUD/JPY tips into fresh fifteen-year high, heading for 99.00

• The AUD/JPY tested into a fresh fifteen-year high On Wednesday as the Yen continues to deflate.
• Japan GDP declined past forecasts, contraction on the cards for Japanese economy.
• Australian wages data came in at expectations, stabilizing the Aussie.

The AUD/JPY tested into its highest bids in fifteen years on Wednesday, driven by a floundering Yen (JPY) that continues to shed value across the board.

Australian Wage Price Index figures for the third quarter printed exactly as expected at 1.3%, while the previous quarter was revised upwards from 0.8% to 0.9%.

Australian wage growth has seen some acceleration, and the Aussie (AUD) can expect to see some chart support as the Reserve Bank of Australia (RBA) continues to face down inflationary pressures that could necessitate further rate hikes down the road.

Early Wednesday also saw Japanese Gross Domestic Product (GDP) numbers for the third quarter, which printed at -0.5%, missing the forecast -0.1% and falling well away from the previous quarter's 1.2% showing.

Growth appears to be declining at an accelerating rate in Japan, adding weight to the Bank of Japan's (BoJ) hyper-dovish stance.

AUD/JPY Technical Outlook

The AUD/JPY is testing the waters near 98.50 after a brief test of fifteen-year highs, and the slumping Yen is down almost 15% against the Aussie from 2023's low bids near 86.00.

Daily candlesticks are pulling firmly away from technical levels, accelerating topside gains from the 50-day Simple Moving Average (SMA) near 95.50, and last week's swing low into 96.00 represents the immediate floor for any downturns.

AUD/JPY Daily Chart

AUD/JPY Technical Levels