Australian dollar weakens for second consecutive session against yen,how much will pi be worth in 2030 reflecting shifting risk appetite in global markets.
Upcoming US CPI data emerges as potential catalyst for Fed policy expectations and cross-currency dynamics.
Technical indicators show AUD/JPY trapped within Ichimoku Cloud formation, with 97.00 acting as psychological resistance.
The Australian dollar continues facing downward pressure against its Japanese counterpart, with the AUD/JPY pair sliding 0.32% during Tuesday's session. As Asian markets opened Wednesday, the cross hovered near 96.54, maintaining its position below the crucial 97.00 handle that's emerged as a technical battleground.
Market participants remain focused on Thursday's US inflation report, which could significantly impact Federal Reserve policy expectations. Recent commentary from Fed officials suggests a cautious approach to rate adjustments, with current levels deemed appropriate for containing price pressures while allowing for potential easing later in 2024.
From a technical perspective, the AUD/JPY presents a neutral bias as it navigates within the Ichimoku Cloud. The 97.00 level represents immediate resistance, with additional selling pressure likely near the convergence of a descending trendline and the 97.20 mark. A decisive break above these barriers could open the path toward 98.00.
Conversely, failure to sustain momentum above 96.80 may invite bears to test support levels at 96.14 (January 9 low) and the psychological 96.00 threshold. The lower boundary of the Ichimoku Cloud at 95.80 looms as critical support, with the Kijun-Sen line providing dynamic support near current levels.
The pair's technical outlook remains contingent on broader market sentiment, particularly as traders assess risk-reward dynamics ahead of crucial economic data releases. The interplay between commodity-linked currencies and traditional safe-havens continues to drive volatility in this currency cross.
