RBA: ‘Do Whatever it Takes’

Because of the RBA’s ‘do whatever it takes’ stance at the moment, and with Aussie CPI inflation poised to increase next week for the twelve months to May, AUD/JPY buyers are likely to remain in control for the time being.

The currency pair recently worked its way above the 2013 peak of ¥105.42, which could be a level traders will look to for support if retested, strengthened on the back of the current uptrend. Above, resistance is seen as far north as ¥107.63.

With the currency pair largely trading under its Lagging Span (dark green) since late 2023, which is viewed as a bullish signal, and the Conversion Line (blue at ¥104.79) also largely trading north of its Base Line (Red ¥104.34) over a similar period, this helps signal that bulls could look to hold things higher. The Ichimoku Cloud also provides support nearby (the difference between the Leading Span A at ¥104.56 [light green] and the Leading Span B at ¥101.87 [orange]).

Price Direction?

On the back of the Ichimoku Indicator signalling bullish activity and the RBA’s bias at the moment, this could lead the AUD/JPY higher in the medium term.

A retest of the 2013 peak from ¥105.42 may be enough to attract additional buying into this market, or we could see a slightly deeper push before bulls attempt to make a show, a move that fills sell stops beneath ¥105.42 and tests the area between the Conversion Line and the Base Line.

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