Tatiana Dementieva
⬤ AUD/JPY has turned back upward after pulling back from its January 14 peak, stabilizing around the 105.2 zone. The hourly chart shows the pair catching support at this level—selling dried up and buyers stepped back in. According to the latest London update, this bounce from 105.2 signals the recent weakness may be over.
⬤ The chart displays an ABC corrective pattern, with the C-wave bottoming near 105.2. From there, AUD/JPY climbed back toward 105.8, confirming early signs of renewed strength. The wave structure indicates the broader trend remains intact—this pullback looks like a correction, not a reversal. Price is now building momentum above the prior low, backing up the recovery story.
⬤ The key invalidation level sits at 104.72. As long as AUD/JPY stays above this mark, the setup favors further stabilization and potential upside. The chart projects consolidation followed by another leg higher, while the analysis warns against selling into this dip, emphasizing its corrective nature.
⬤ This matters for broader market sentiment since AUD/JPY reflects risk appetite and yield spreads between Australia and Japan. A sustained recovery here suggests traders are leaning toward higher-yielding currencies and pulling back from defensive plays. With FX volatility running high, technical turning points like this help clarify near-term direction and provide a clear framework for tracking momentum ahead.
Tatiana Dementieva
