AUD/JPY retreats to 104.50 after hitting 17-month highs

💡 DMK Insight

AUD/JPY just ended a five-day rally, and here’s why that matters: The pullback from 104.72, the highest point since July 2024, signals potential profit-taking or a shift in market sentiment. Traders should consider that this level could act as a resistance point moving forward. If the pair fails to reclaim that high, we might see further downside, especially if broader market conditions shift against the Aussie. Economic indicators from Australia and Japan will be crucial to watch; any signs of weakness in either economy could exacerbate this pullback. On the flip side, if AUD/JPY manages to break back above 104.72, it could reignite bullish momentum, drawing in more buyers. Keep an eye on the 104.00 level as a potential support zone; a drop below that could signal a deeper correction. Watch for upcoming economic data releases that could impact both currencies, as they might provide the catalyst needed for a decisive move in either direction.