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The AUD/JPY cross has gained traction above the 111.50 level, currently trading near 111.70 amid positive technical indicators and improved risk appetite driven by China's economic data. Analysts highlight that the pair's upward momentum is supported by bullish patterns on the 4-hour chart, with key resistance at 112.00 and support near 111.20. The recent stabilization of the cross follows a period of consolidation after hitting a multi-month low in late 2023. For traders, the AUD/JPY movement is significant as it reflects broader market sentiment towards risk assets. The pair's performance is closely tied to China's economic health, which impacts commodity prices and Australian exports. With the US-Israel-Iran tensions still influencing safe-haven demand, the AUD/JPY could see increased volatility if geopolitical risks shift. Technical traders may look for a breakout above 112.00 as a potential bullish signal. Looking ahead, investors should monitor China's January trade data and the Bank of Japan's policy stance for further directional cues. A sustained move above 113.00 could target the 115.00 psychological level, while a breakdown below 111.00 would raise bearish concerns. The cross's performance will also be influenced by the Federal Reserve's rate decision in March, which could impact the USD's relative strength against the AUD.
