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

What to Pay Attention to on April 23? A Breakdown of Fundamental Events for Beginners

A considerable number of macroeconomic events are scheduled for Wednesday. All of them are Purchasing Managers' Index (PMI) reports for April in the services and manufacturing sectors. The indices will

Paolo Greco 07:01 2025-04-23 UTC+2

GBP/USD Overview – April 23: The British Pound Can't Stop Smiling

On Tuesday, the GBP/USD currency pair traded much more calmly, yet again showed signs of a "maxed-out flat" pattern. As previously noted, the US dollar has only had two behaviors

Paolo Greco 04:56 2025-04-23 UTC+2

EUR/USD Overview – April 23: Another Calm Before Another Collapse?

The EUR/USD currency pair traded more calmly on Tuesday than on Monday. The US dollar managed to avoid another fall, but it's too early to celebrate. The greenback can collapse

Paolo Greco 04:56 2025-04-23 UTC+2

USD/JPY. On the Threshold of the 139th Figure

The USD/JPY pair has been in a consistent downtrend for the fourth consecutive week. On Tuesday, sellers pushed the pair to the edge of the 139.00 area, hitting the lowest

Irina Manzenko 00:46 2025-04-23 UTC+2

The Dollar Has Been Replaced. Nature Abhors a Vacuum

Fear paralyzes, but action persists. Investors are slowly overcoming their concerns over Donald Trump's attacks on the independence of the Federal Reserve and are starting to lock in profits

Marek Petkovich 00:08 2025-04-23 UTC+2

Bitcoin Took Its Chance

Slow and steady wins the race! Bitcoin quietly broke through to its highest levels since early March amid Donald Trump's attacks on Jerome Powell. When the independence of the Federal

Marek Petkovich 00:08 2025-04-23 UTC+2

XAU/USD. Analysis and Forecast

After setting a new all-time high at $3500 under overbought conditions, gold prices are pulling back. Nevertheless, bullish sentiment remains strong due to persistent concerns over the potential economic fallout

Irina Yanina 19:02 2025-04-22 UTC+2

EUR/GBP. Analysis and Forecast

The EUR/GBP pair is losing ground today after two consecutive days of gains, trading near the psychological level of 0.8600. The pound is receiving support from optimism surrounding ongoing trade

Irina Yanina 11:52 2025-04-22 UTC+2

Why the U.S. Dollar Keeps Falling

The U.S. dollar fell to its lowest level since January 2024 after President Donald Trump's criticism of the Federal Reserve sparked concerns over the central bank's independence. The dollar weakened

Jakub Novak 11:12 2025-04-22 UTC+2

Loss of Confidence in the Fed Will Pressure the Dollar (Bitcoin Likely to Continue Rising, USD/CAD to Decline)

On Monday, the U.S. stock market experienced a sharp decline, pulling down many global exchanges, as the "turbulent" actions of President Trump continue to shift from one hot topic

Pati Gani 09:00 2025-04-22 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.