AUD/JPY Price Forecast: Edges higher above 112.50 as mildly bullish bias persists
The AUD/JPY cross gathers strength to around 112.70 during the early European session on Wednesday. Nonetheless, renewed tensions between the US and Iran, and fears of possible intervention by Japanese authorities might support the Japanese Yen (JPY) and cap the upside for the cross.
BBC reported on Tuesday that the US launched "powerful" strikes on Iran in response to attacks on three oil tankers in the Strait of Hormuz. US Central Command (Centcom) said that it had hit over 80 targets, including more than 60 Islamic Revolutionary Guard Corps (IRGC) small boats in the strait.
Technical Analysis:
In the daily chart, AUD/JPY holds above the 100-day moving average (MA) and the Bollinger Bands’ (20) middle band, keeping the broader trend supported after the latest rebound. Price is also comfortably above the lower Bollinger band, while the Relative Strength Index (14) around 51 suggests neutral-to-mildly positive momentum rather than an overstretched rally.
On the downside, the immediate technical floor aligns with the 100-day MA at 112.50 and the Bollinger middle band at 112.43, forming a nearby demand zone; a daily close below this area would expose the lower Bollinger band at 111.15. On the upside, the first upside barrier emerges at the June 16 high of 113.55, en route to the the Bollinger Bands’ upper band of 113.70.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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