AUD/JPY Price Analisis: Approaches 85.00 for the second time in the week
- The Australian dollar shows some resilience and extends its weekly gains some 1.30% despite a risk-off market mood.
- The Ukraine-Russia conflict took a breather as negotiators of both nations reunited for the second round of talks.
- AUD/JPY Technical Outlook: Upward biased testing the 85.00 mark; once cleared bull’s next target is 86.00.
The AUD/JPY is climbing though retraced from YTD highs near the 85.00 mark as market sentiment dampened, as investors assess the economic impact of the Russia-Ukraine conflict, while Wall Street indices recorded losses. Also, February’s US Nonfarm payrolls report looms, as economists expect at least 420K jobs added to the economy. At the time of writing, the AUD/JPY is trading at 84.60.
Recapping some geopolitical headlines of Thursday’s trading session, Ukrania and Russia negotiators said they would resume talks for the third time in the next week and agreed on humanitarian corridors to evacuate civilians. Ukraine President Zelensky noted that he has “to talk with Putin to end the war.” Contrarily, Russian President Vladimir Putin stated that the ongoing advance in Ukraine is “going to plan.” In a phone call with French President Macron, he told him that Russia will achieve its goals in Ukraine.
That said, in Thursday’s trading session, the AUD/JPY began the Asian session on the wrong foot, though rallied by its end, and reached a YTD high at 84.93. afterward, the cross-currency retraced towards 84.50 as Friday’s Asian Pacific session looms.
AUD/JPY Price Forecast: Technical outlook
The daily chart shows the AUD/JPY is bullish biased. The daily moving averages (DMAs) located below the spot price is the first signal that confirms the aforementioned. Also, AUD bulls holding the exchange rate above the 84.30 January 5 high, keep them in control. Nevertheless, it is worth noting that Thursday’s price action left a candlestick with an upper-wick the same size on the real body, meaning indecision.
The AUD/JPY first resistance would be 85.00. Breach of the latter would expose May 10, 2021, daily high at 85.80, followed by October 21, 2021, 86.25, daily high.
