Forex News

05:09:56 05-07-2022

AUD/JPY Price Analysis: Teases falling wedge breakout near 94.00 on China data ahead of RBA

  • AUD/JPY pierces one-month-old resistance line on upbeat China PMI for June.
  • China Caixin Services PMI jumped to 54.5 in June, versus 47.3 expected.
  • 21-DMA offers additional upside filter to probe falling wedge confirmation.
  • 50-DMA acts as immediate support before the wedge’s lower line.

AUD/JPY remains on the front foot around a one-week high as buyers poke the short-term key hurdle near 94.00 after China flashed upbeat data during Tuesday’s Asian session.

That said, China’s Caixin Services PMI for June rallied past market consensus and previous readouts as it flashed 54.5 figure, compared to 47.3 forecasts and 41.4 prior.

While cheering the upbeat China data, AUD/JPY crosses the upper line of the one-month-old falling wedge chart pattern, suggesting further advances.

However, the 21-DMA level near 94.05 appears the validation point for the cross-currency pair’s further upside towards the theoretical target surrounding 101.50.

It’s worth noting that the late June swing high near 95.30, the previous monthly peak of 96.88 and the 100.00 psychological magnet could entertain AUD/JPY during the run-up to 101.50.

On the contrary, failure to provide a daily closing beyond 94.05 could drag the quote back to 50-DMA support near 92.50.

Following that, the lower line of the stated wedge, close to 91.30, may entertain the AUD/JPY pair sellers before directing them to the 90.00 round figure.

Overall, confirmation of the bullish chart pattern joins upbeat MACD and RSI signals to keep buyers hopeful ahead of the key Reserve Bank of Australia (RBA) Interest Rate Decision.

AUD/JPY: Daily chart

Trend: Further upside expected


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