AUDJPY BULLISH OR BEARISH DETAILED ANALYSISAUDJPY has successfully broken out of a long-term descending channel and is currently trading around 94.50. The breakout is clean and supported by solid bullish volume, which confirms that momentum is shifting in favor of the bulls. This setup indicates a clear trend reversal on the daily timeframe, and with the pair establishing higher lows and breaking resistance, the path toward 100.00 looks technically achievable in the coming weeks.
From a fundamental standpoint, the Australian dollar is gaining strength after the Reserve Bank of Australia (RBA) maintained a firm stance on inflation management. The latest CPI figures remain above the RBA’s comfort zone, and recent wage growth data has further reduced the probability of near-term rate cuts. Meanwhile, the Japanese yen continues to lag due to the Bank of Japan's ultra-loose monetary stance and consistent verbal intervention that lacks follow-through, keeping JPY broadly weaker across the board.
Technically, we’ve seen strong follow-through after the breakout, with price now holding firmly above prior resistance turned support. If this momentum sustains, we could see buyers step in aggressively, targeting 96.50 short-term and extending toward the key psychological level of 100.00 in the medium term. The risk-reward remains attractive with a clearly defined invalidation point below 91.00.
Overall, AUDJPY stands out as one of the most bullish JPY crosses on my radar. With a clean breakout, supportive fundamentals from the Australian side, and persistent weakness in the yen, this trade aligns with broader macro sentiment and could offer strong upside potential heading into the next quarter.
