FX.co ★ glow_with_mouchi | Analysis for AUD/JPY

i see the AUD/JPY daily chart continues to reflect a broader bullish structure, although the pair has recently gone through a corrective phase before attempting to regain upward momentum. Over the past several months, price action has respected a well-defined ascending trendline that guided the pair higher from the lows near the 100 area. This steady climb reflects consistent demand for the pair, likely supported by the relative strength of the Australian dollar against the Japanese yen during this period Looking at the chart more closely, I notice that the market previously experienced a temporary breakdown below the rising trendline after reaching a peak slightly above the 113.00 region. That move initially suggested the possibility of a deeper correction. However, instead of accelerating lower, the pair found support near the 109.50–110.00 area and quickly stabilized. In my view, this reaction indicates that buyers are still actively defending dips, which keeps the broader bullish bias intact for now. The recent price action shows a rebound forming higher lows, which is typically an early sign that bullish pressure may be returning. The candles in the most recent sessions appear to be gradually pushing toward the previous swing highs again. If the pair manages to break convincingly above the resistance zone around 113.00–113.50, I believe it could open the door for a continuation of the long-term uptrend. In that scenario, the next potential target area could lie near 115.00, which would represent a fresh multi-month high Momentum indicators on the chart also provide some interesting clues. The RSI is currently hovering around the mid-to-upper 50s, which tells me that bullish momentum is building but has not yet reached overbought territory. This positioning leaves room for additional upside if buyers continue to step in. At the same time, the MACD histogram appears to be flattening after a period of decline, suggesting that bearish momentum is fading and a potential bullish crossover could develop if price continues to strengthen From a structural point of view, the key level I’m watching on the downside sits near 110.50–111.00. This area has recently acted as short-term support during the recovery phase. If price remains above this zone, the bullish scenario remains the more probable outcome in my opinion. A break below it, however, could shift sentiment back toward the bears and potentially trigger another test of the deeper support around 108.50. Another factor that makes this pair interesting is the general nature of AUD/JPY as a sentiment-driven cross. Since it is often considered a proxy for global risk appetite, its direction can sometimes mirror shifts in investor confidence. When risk sentiment improves, the pair tends to rise as traders favor higher-yielding currencies like the Australian dollar over the traditionally safe-haven Japanese yen Overall, my personal outlook on AUD/JPY remains cautiously bullish as long as the price structure continues to hold above the recent support levels. The market has already demonstrated resilience after the previous pullback, and the gradual recovery suggests that buyers are attempting to regain control. A decisive breakout above the recent highs would likely confirm the continuation of the broader uptrend and could attract additional momentum traders into the market.