AUD/JPY has been cruising above an ascending trend line on its 4-hour time frame, and it looks like another dip to support is underway.
Or are we about to see a breakdown and reversal soon?
Take a look at these inflection points and potential targets!
AUD/JPY 4-hour Forex Chart Faster With TradingView
Stronger-than-expected Australian inflation data released earlier this week bolstered March RBA tightening expectations, allowing AUD/JPY to bust through the 110.00 barrier.
At the same time, political pressure from Japanese PM Takaichi for the BOJ to refrain from hiking rates weighed heavily on the yen, followed by speculations that the latest central bank appointees would likely lean dovish.
Can AUD/JPY sustain its uptrend from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/JPY appears to be taking a breather from its climb as it bounced off resistance near R2 (111.56) and looks due for a pullback to nearby Fibonacci retracement levels.
The 38.2% Fib already appears to be attracting some buyers, though a larger correction could still reach the 50% level around the area of interest at 110.00 or the 61.8% Fib closer to the trend line.
Keep your eyes peeled for reversal candlesticks suggesting a bounce at these levels, as a continuation of the rally could take AUD/JPY back up to the swing high or to fresh upside targets around the 112.00 major psychological level then R3 (113.05).
On the other hand, long red candles closing below the trend line and pivot point (109.22) could point to trend reversal, potentially dragging the pair down to S1 (108.37) then S2 (106.88) next.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art highlights AUD/JPY’s uptrend. But as any pro will tell you, a great setup can still fail if the trader lacks the discipline to execute around it well.
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