In October, the Australian Dollar (AUD) to Japanese Yen (JPY) exchange rate has been moving within a range around 100 yen. The mid-99 yen level represents a 50% Fibonacci retracement, and the 100 yen mark coincides with the base line of the Bollinger Bands. Additionally, the 200-day moving average has settled around 100.30 yen. As a result, the currency pair remains stuck in a range between 101 yen and 99 yen.
Normally, if the range continues, buying pressure for AUD/JPY would increase as traders try to take advantage of interest rate differences. However, it seems that there are concerns about the risk of the exchange rate falling, which is preventing this from happening.
The main reason for this range-bound movement is the U.S. dollar’s dominance in the market. A breakout from this range might occur if the market shifts from focusing on the U.S. dollar to focusing on the Japanese yen. This could happen if the Bank of Japan takes a positive step toward raising interest rates, which would trigger a reversal of the yen carry trade.
Predicted range for AUD/JPY: 101.00 yen to 99.00 yen
Please note that the above information does not guarantee profits, and you should make trading decisions at your own discretion.discretion.