AUD/JPY remains depressed near mid-104.00s, below YTD top as JPY benefits from hawkish BoJ

💡 DMK Insight

The AUD/JPY cross is seeing some selling pressure, but it’s still hovering near July 2024 highs, and here’s why that matters: Traders should pay attention to this cross as it reflects broader risk sentiment. The recent intraday losses suggest a potential pullback, but the lack of follow-through indicates that buyers are still interested. If the pair can hold above the mid-104.00s, it may signal a continuation of the bullish trend. Look for resistance around 105.00, which could be a key level to watch for breakout or reversal signals. Additionally, keep an eye on economic indicators from Australia and Japan, as they could sway this pair significantly. On the flip side, if we see a break below the mid-104.00s, it could trigger a wave of selling, especially if risk aversion increases in the broader market. This could also impact correlated assets like commodities, particularly if the Australian dollar weakens further. Watch for any news or data releases that might influence market sentiment in the coming days.