It is worth noting that the strengthening of the Japanese yen almost coincided with the Bank of Japan suggesting that it would do something. AUD/JPY initially tried to rally in early trade on Thursday, but found enough noise and resistance at the 91 yen level. This is an area that has been relevant on more than one occasion and almost certainly has a lot of market memory. It was previous support, so now it should be resisted, and that’s why I think a lot of people are looking at it through the prism of whether the level remains decisive or not. Advertisement Do you have a place to try? Don’t wait! Trade AUD / USD Now It is also worth noting that the 50-day EMA is starting to break below the 200-day EMA, forming a so-called death cross. Sailor is probably a very negative long-term sign, so it will be interesting to see how that plays out. After all, the Japanese yen is perhaps one of the most interesting currencies in 2023, having been feverishly sold for most of the past year. Recall that the Bank of Japan has indicated that it intends to maintain a yield curve adjustment and a 50 basis point cap on the 10-year bond. The Japanese yen is likely to continue its rise It is worth noting that the strengthening of the Japanese yen has almost coincided with the Bank of Japan suggesting that it will do something. However, the yield on Japan’s 10-year government bond is only down 1 basis points overnight, so there is still room for volatility. If we see the market threaten the 50bp level in the 10-year yield, it is very likely that the Japanese yen will continue to take a hit as the central bank needs to encourage debt purchases. It is also worth noting that Wednesday’s candlestick was quite brutal and was massively bought against the Japanese yen, not only the Australian dollar, but also most other currencies. In other words, we may have just seen a „bottom” of the market when we made a double bottom at ¥88. We’re not there yet, but if we can make a significant move above the 91 yen level, maybe daily or even weekly, I think this market will start to surge outward. Otherwise, we may see it bounce between ¥91 and ¥88.