AUD/JPY Analysis: What's Next After Testing Key Support at 94.50? | Technical Outlook for the Aussie-Yen Pair

Current Market Position

The litecoin wallet extensionAUD/JPY cross demonstrates modest retracement during Thursday's Asian session, consolidating near the 94.50 handle following Wednesday's 0.50% advance. This price action occurs within a well-defined ascending channel that has contained price movement since early May, suggesting continued bullish potential for the currency pair.

Technical Indicators Overview

Market technicians note several bullish signals supporting the current uptrend. The 14-day Relative Strength Index maintains its position above the neutral 50 level, indicating sustained buying pressure. Furthermore, the pair continues trading above the nine-day Exponential Moving Average (94.26), reinforcing short-term bullish momentum.

Potential Upside Targets

Should the current technical structure hold, traders anticipate potential tests of key resistance levels. The upper boundary of the ascending channel near 95.50 presents the first significant hurdle, followed by the March 18 peak at 95.75. A decisive break above this zone could open the path toward psychological resistance at 96.00, potentially triggering additional algorithmic buying programs.

Downside Risk Factors

The immediate support cluster forms around the nine-day EMA at 94.26, with additional floors emerging at the 50-day EMA (93.50) and channel support near 93.00. A sustained break below these technical levels might signal trend exhaustion, potentially exposing the May 1 swing low at 91.50. Market participants should monitor volume patterns and macroeconomic catalysts that could influence this technically-driven currency pair.

Market Context and Considerations

This currency cross remains particularly sensitive to risk sentiment fluctuations and commodity price movements. The Australian dollar's commodity-linked characteristics combined with the yen's safe-haven status create unique volatility opportunities. Traders should remain attentive to shifts in global risk appetite that could override current technical patterns.

Strategic Trading Approaches

Several strategic approaches emerge from this technical setup. Range-bound traders might consider channel play strategies, while breakout traders could prepare contingency plans for potential tests of key psychological levels. The current technical landscape suggests maintaining flexible position sizing given the pair's historical volatility characteristics.