AUD/JPY Price Analysis: Looks upwards, with bullish potential despite Monday’s downtick

• AUD/JPY recovers, trading above last week’s low of 95.25.
• Monday’s bullish harami formation suggests a potential uptrend.
• The technical outlook presents resistance at 96.00 and 96.38.

The AUD/JPY begins the Tuesday Asian session positively after printing a 0.17% loss on Monday due to risk-aversion and Japanese authorities’ language intervention in the Forex markets. The AUD/JPY is trading at 95.78, slightly above last week’s low of 95.25.

AUD/JPY Price Analysis: Technical outlook

From a technical perspective, the AUD/JPY is upward biased, but since peaking at the year-to-date (YTD) high at 97.67, it has lost 2%. However, Monday’s price action contracted and formed a two-candlestick pattern named a bullish harami. The AUD/JPY could be set to resume its uptrend, but it would lean on market sentiment and dovish comments by the Bank of Japan (BoJ) officials.

The AUD/JPY first resistance would be the 96.00 figure, followed by the Tenkan Sen line at 96.38. A breach of the latter will expose the 97.00 figure, ahead of challenging the YTD high at 97.67. Conversely, if AUD/JPY dives below the Senkou Span A support at 95.17, it will expose the 95.00 figure. A drop below that level will expose the November 16 high at 94.65 before dropping toward the Kijun-Sen line at 93.96.

AUD/JPY Price Action – Daily chart