AUD/JPY hits new fifteen-year high and heads for 99.00

• On Wednesday, the AUD/JPY pair hit a new fifteen-year high, as the yen continues to deflate.
• Japanese GDP fell above forecasts, which predicts a contraction of the Japanese economy.
• Australian wage data was in line with forecasts, stabilizing the Aussie.

On Wednesday, the AUD/JPY pair hit its highest bid level in fifteen years, boosted by a Yen (JPY) that continues to lose value across the board.

The Australian Wage Price Index figures for the third quarter were exactly as expected, at 1.3%, while those for the previous quarter were revised upwards, from 0.8% to 0.9%.

Wage growth in Australia has seen some acceleration, and the Australian Dollar (AUD) can expect to find some support on the charts as the Reserve Bank of Australia (RBA) continues to address inflationary pressures that could require further rate hikes later.

Japan’s third-quarter Gross Domestic Product (GDP) figures were also released early Wednesday, coming in at -0.5%, below the forecast of -0.1% and well below the previous quarter’s 1.2%. .

Growth appears to be slowing at a rapid pace in Japan, adding weight to the Bank of Japan’s (BoJ) hyper-dovish stance.

AUD/JPY Technical Outlook

AUD/JPY is testing the waters near 98.50 after a brief test of fifteen-year highs, and the yen is falling almost 15% against the Aussie from 2023 bid lows near 86.00.

The daily candlestick charts are moving firmly away from technical levels, accelerating rallies from the 50-day SMA near 95.50, and last week’s low at 96.00 represents the immediate floor for any downturn.

AUD/JPY Daily Chart

AUD/JPY technical levels