AUDJPY Chart Technical Outlook crawls higher on Yen weakness, likely to test 94.85 resistance area
Australian Dollar’s rebound from 93.00 on Tuesday has extended beyond the top of the last few day’s trading range, at 94.00 giving fresh hopes for bulls to test the 94.85 resistance area.
Soft factory inflation figures in Japan have given further reasons to the Bank of Japan to keep its ultra-loose monetary policy unchanged for some time, which has punished the JPY across the board.
That said, the broader trend remains unchanged, with the Aussie trapped in a bearish channel since peaking at 97.70 in late June, as the weak economic outlook of China, a key Australian partner is weighing on the Aussie.
The technical picture shows a flag formation with the potential for a bullish outcome. Resistances are the mentioned 94.85 and 95.85. Support levels are 93.00 and 91.85.