AUD/JPY Price Forecast: Falls to near 111.00 near lower ascending channel boundary

• AUD/JPY tests the immediate support at the lower ascending channel boundary around 110.60.
• The 14-day Relative Strength Index near 50 signals balanced conditions after easing from prior overbought levels.
• The currency cross may find an initial barrier at the nine-day EMA of 111.69.

AUD/JPY extends its losses for the second successive session, trading around 111.00 during the early European hours on Tuesday. The technical analysis of the daily chart suggests a potential bearish reversal as the currency cross is testing the lower boundary of the ascending channel pattern.

However, the near-term bias is neutral with a slight bullish tilt as price consolidates above the rising 50-day Exponential Moving Average (EMA), preserving the broader uptrend structure despite the recent pullback from the 113.00 area. The nine-day EMA has flattened just above the spot, reflecting stalled upside momentum rather than a clear reversal.

The 14-day Relative Strength Index (RSI) at 50 signals balanced conditions after unwinding from overbought readings above 70 seen earlier this month, which aligns with a pause phase within an established advance rather than aggressive selling pressure.

The AUD/JPY cross may rebound toward the potential level of 111.50, followed by the nine-day EMA at 111.69. A break above the latter would improve the short-term price momentum and support the currency cross to approach the all-time high of 113.96, which was reached on March 11.

On the downside, the immediate support lies at the lower ascending channel boundary around 110.60, followed by the 50-day EMA at 109.60. Further declines would weaken the medium-term momentum and expose the psychological support at the 108.00 level.

(The technical analysis of this story was written with the help of an AI tool.)