AUDJPY Forming Bullish Structure

AUDJPY continues to show strong bullish structure, with price breaking out of a descending channel and pushing toward new highs, confirming continued buying interest. The market has been forming higher highs and higher lows, and this recent breakout signals a potential continuation of bullish momentum. From a technical perspective, the breakout above the consolidation zone reflects aggressive demand from institutional participants, and as long as price holds above the recent support region, buyers may continue controlling the trend.

Fundamentally, AUDJPY is currently influenced by contrasting monetary conditions between the Reserve Bank of Australia and the Bank of Japan. The RBA has maintained a firm stance as inflation in Australia remains above the target range, increasing the probability of additional rate policy firmness to keep inflation under control. This supports the Australian dollar, as higher interest rates strengthen currency demand in global carry trade flows. On the opposite side, the Bank of Japan continues to maintain an ultra-dovish stance, with very low interest rates and ongoing financial easing, which keeps the yen fundamentally weak.

At the same time, global equity sentiment remains risk-on, which typically benefits AUD over JPY due to Australia’s commodity-linked profile. With Japanese yields still suppressed and foreign capital outflows steady, traders continue favoring AUDJPY as a popular carry trade pair. If risk sentiment remains stable and RBA maintains its policy outlook, the pair may continue advancing toward higher price levels in the medium term.

Overall, as long as price remains above the breakout level and the fundamental divergence between the two central banks persists, AUDJPY has the potential to sustain further upside. Professional traders will continue watching price reactions on retests and market volume to secure profitable continuation entries as the bullish trend develops.