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AUD/JPY rebounds from daily lows, eyes 111.70 for bullish breakout

The AUD/JPY trims some of its earlier but is ending the session on a normal note, down 0.63%, after bouncing off daily lows below the 111.00 figure. At the time of writing, the cross-pair trades at 110.89.

🔗 Source

💡 DMK Insight

The AUD/JPY’s drop to 110.89 signals potential volatility ahead. Traders should note the recent bounce off daily lows below 111.00, which could indicate a struggle for the pair to maintain momentum. The 110.50 level is crucial; if breached, it could trigger further selling pressure. This movement reflects broader market sentiment, particularly in response to economic data from Australia and Japan. Given the current global economic climate, any shifts in interest rates or trade policies could amplify fluctuations in this pair. Watch for upcoming economic releases that might impact the Australian dollar or Japanese yen, as they could provide the catalyst for a breakout or further consolidation. On the flip side, if the pair can reclaim the 111.00 level, it might attract bullish sentiment, especially if supported by positive data from Australia. Keep an eye on the 110.50 support level as a potential pivot point for future trades.

📮 Takeaway

Monitor the 110.50 support level closely; a break below could lead to increased selling in AUD/JPY.

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