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 May 29? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic reports are scheduled for Thursday. The macroeconomic event calendars for Germany, the United Kingdom, and the Eurozone are empty. Only the United States will release reports

Paolo Greco 06:58 2025-05-29 UTC+2

GBP/USD Overview – May 29: The Dollar Begins to Believe in Miracles

On Wednesday, the GBP/USD currency pair traded with a slight decline, but it's hard to believe in further strengthening the U.S. dollar under the current circumstances. On the one hand

Paolo Greco 03:32 2025-05-29 UTC+2

EUR/USD Overview – May 29: Laughable or Lamentable? Trump Promises a Deal Again

The EUR/USD currency pair did not perform as well for the dollar on Wednesday as it did during the previous two days. However, even Monday and Tuesday can hardly

Paolo Greco 03:32 2025-05-29 UTC+2

NZD/USD. Hawkish Rate Cut: The Reserve Bank of New Zealand Concludes Its May Meeting

As expected, the Reserve Bank of New Zealand (RBNZ) lowered the interest rate by 25 basis points to 3.25% following its May meeting. This marks the sixth round of monetary

Irina Manzenko 00:31 2025-05-29 UTC+2

The Yen Saws Off the Branch Under the Dollar

When you begin dismantling a system, you risk cutting off the branch you are sitting on. For decades, the United States' main trading partners earned money by exporting goods

Marek Petkovich 00:30 2025-05-29 UTC+2

The Euro Is Rushing Things

After a rapid rally from February through April, EUR/USD entered a prolonged consolidation phase. For several weeks now, the major currency pair has remained locked within the 1.1100–1.1400 trading range

Marek Petkovich 18:43 2025-05-28 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair has been recovering for the third consecutive day from this year's lowest level, supported by renewed buying interest in the U.S. dollar. Yesterday's optimistic U.S. economic data

Irina Yanina 11:44 2025-05-28 UTC+2

DXY: U.S. Dollar Index Continues to Show Positive Momentum for the Second Day in a Row

On Wednesday, the U.S. Dollar Index (DXY) continued its upward momentum for the second consecutive day, rebounding from the monthly low reached earlier this week. The index rose

Irina Yanina 11:36 2025-05-28 UTC+2

Why Are Currencies Traded Against the Dollar Not Declining? (There Is a Chance EUR/USD May Resume Growth and USD/JPY May Fall)

We are truly living in an unusual time, where the classic principles of assessing market situations are being cast aside in favor of more pressing and, more importantly, unclear

Pati Gani 10:05 2025-05-28 UTC+2

Market Conditions Favor the Dollar

Yesterday, the U.S. dollar continued to strengthen against a number of risk assets—particularly gaining ground against the euro and the British pound. Strong U.S. economic data triggered significant movements

Jakub Novak 09:53 2025-05-28 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.