empty
27.02.2025 12:19 PM
AUD/JPY: Analysis and Forecast

This image is no longer relevant

The AUD/JPY pair's rate is attempting to hold slightly above the 94.00 level, its lowest point since September 2024.

Investors are increasingly confident that the Bank of Japan (BoJ) will raise interest rates, driven by rising inflation in Japan. This expectation overshadows recent comments from BoJ Governor Kazuo Ueda, who hinted at a possible increase in regular bond purchases, which in turn is pushing Japanese government bond yields higher.

Additionally, concerns over US President Donald Trump's tariff plans continue to support the Japanese yen as a safe-haven currency, exerting further pressure on AUD/JPY.

Trump has ordered an investigation into copper imports to determine whether tariffs should be imposed for national security reasons. This directive adds to the already implemented 10% tariffs on Chinese goods and threats of retaliatory measures against other countries.

Moreover, weaker domestic consumer inflation data from Australia has contributed to the relative underperformance of the Australian dollar, further weighing on AUD/JPY.

On Thursday, Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser expressed optimism about inflation trends, but emphasized the need for sustainable progress in this area. He also highlighted that Australia's tight labor market remains a significant challenge for inflation control.

According to a Wall Street Journal report citing the Commonwealth Bank of Australia (CBA), there is growing concern about the potential risks of a US-China trade war, triggered by Trump's tariff actions. China's response to these threats will be a crucial factor influencing the future performance of the Australian dollar.

Technical Outlook

The recent decline below the previous yearly low at 94.35 confirms the weakness of the Australian dollar.

If the cross falls and holds below 94.00, it would further validate that the path of least resistance remains downward. Additionally, oscillators on the daily chart remain in negative territory, reinforcing a bearish bias.

Key Economic Events to Watch

For better trading opportunities, traders should closely monitor important economic reports from Japan on Friday, including:

  • Industrial Production Data
  • Retail Sales Figures
  • Tokyo Inflation Report

These reports could provide fresh momentum for the AUD/JPY pair's rate.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY: Analysis and Forecast

The Japanese yen continues to be on the defensive against the U.S. dollar, as global risk sentiment improves following new stimulus measures announced by China over the weekend. This

Irina Yanina 11:35 2025-03-17 UTC+2

USD/CAD: The Pair Starts the New Week with Caution

The USD/CAD pair begins the new week with caution, fluctuating within a narrow range above 1.4350 and remaining above the 50-day SMA. However, fundamental factors suggest potential downside risks. Positive

Irina Yanina 11:05 2025-03-17 UTC+2

Are stock investors poised to buy shares during nosedive?

Anything can happen sooner or later. The S&P 500 entered correction territory in just 16 trading sessions. In the previous 24 instances where stocks dropped 10% from recent record highs

Marek Petkovich 09:32 2025-03-17 UTC+2

Markets Will Remain in a Depressed State for Some Time (we expect a renewed decline in #Bitcoin and #Litecoin)

Global financial markets continue to be heavily influenced by the policies of the U.S. president, who is disrupting the established economic and geopolitical framework that existed before him. Naturally, this

Pati Gani 09:15 2025-03-17 UTC+2

Dollar Sells Off, Recession Threat Grows, S&P 500 Index Risks a Major Collapse

The dollar sell-off continues without signs of slowing down. According to the CFTC report, the net long position on the USD decreased by another $4.6 billion over the week, reaching

Kuvat Raharjo 08:52 2025-03-17 UTC+2

GBP/USD Pair Overview – March 17: The Market Has Fallen Asleep. Nobody Cares About the Economy

The GBP/USD currency pair completely stagnated on Friday. The chart below clearly shows that there was significant volatility during the first three days of the week before last when

Paolo Greco 04:05 2025-03-17 UTC+2

EUR/USD Pair Overview – March 17: No Hint of Correction

The EUR/USD currency pair did not continue its sluggish downward movement from Wednesday and Thursday on Friday. As a result, we will have to wait once again for a correction

Paolo Greco 04:05 2025-03-17 UTC+2

US Dollar: Weekly Preview

America will once again be a major focus in the news. Surprisingly, it won't primarily be due to economic updates or the Federal Reserve meeting, but rather news surrounding Donald

Chin Zhao 23:05 2025-03-16 UTC+2

EUR/USD Weekly Preview: All Eyes on the Fed

After experiencing a significant surge of 500 pips, the EUR/USD pair has settled into a period of stagnation, awaiting further news. The Federal Reserve may either alleviate or heighten concerns

Irina Manzenko 23:05 2025-03-16 UTC+2

What to Pay Attention to on March 17? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Monday, with the only notable report being on retail sales in the US. It's important to note that the market has shown

Paolo Greco 22:27 2025-03-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.