The AUD/JPY pair has been trading within a tight range of 93.80-94.70 for the past three days. This consolidation comes after US President Donald Trump announced a complete ceasefire between Israel and Iran. The news has boosted high-beta currencies like the Australian Dollar, New Zealand Dollar, and Canadian Dollar against their safe-haven counterparts.
As of Tuesday’s Asian session, the AUD/JPY is trading at 94.35, up 0.21%. The pair has the potential to appreciate further if it manages to break above the June high of 94.83. A successful breach of this level could open the door for a move toward the May 13 high of 95.64, with subsequent targets at the February 12 high of 97.32 and the Year-To-Date peak of 99.15.
Technical indicators suggest that buyers are gaining momentum, with the Relative Strength Index remaining bullish. However, it has yet to surpass its latest peak. A climb above the 94.83 mark would likely increase bullish sentiment and potentially lead to higher prices.
Aud/jpy trading within tight range
If the AUD/JPY fails to clear the 95.00 level, a pullback may occur, dragging the exchange rate down to the Kijun-sen at 93.77, followed by the Tenkan-sen at 93.56, and finally to the Senkou Span A at 93.40. The ceasefire announcement has had a positive impact on market sentiment, triggering a fresh wave of global risk-on trade.
As a result, risky assets have seen renewed investor interest. In the broader market context, the EUR/USD has consolidated near weekly highs above 1.1600, and the GBP/USD has held recent gains above 1.3600 during the European session. Additionally, the gold price has maintained a heavily offered tone, trading just above a two-week low as the news of the ceasefire further bolstered investor confidence, leading to flows away from safe-haven assets like precious metals.
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