AUD/JPY Price Outlook – Trade SetupAustralian Dollar / Japanese YenFOREXCOM:AUDJPYATFX_Global📊 Technical Structure AUDJPY AUD/JPY pulled back after the recent rally and is now consolidating around the 105.70–105.93 support zone. This area overlaps with prior demand and a key technical base, where downside momentum has started to slow. From a structural perspective, the current move appears to be a corrective pullback within an ongoing bullish trend, rather than a trend reversal. As long as price holds above the support zone, the broader price action favours a continuation higher toward the upper resistance area. 🎯 Trade Setup (Bullish Bias) Entry Zone: 105.70 – 105.93 Stop Loss: 105.61 Take Profit 1: 106.62 Take Profit 2: 106.84 Risk–Reward Ratio: Approx. 1 : 2.36 📌 Invalidation A sustained break and close below 105.61 would invalidate the bullish setup and suggest a deeper corrective move. 🌐 Macro Background On the macro front, the Japanese Yen continues to face pressure despite repeated verbal warnings from Japanese officials regarding potential intervention. So far, these comments have failed to translate into concrete action, keeping the JPY structurally vulnerable. Meanwhile, the Australian Dollar remains supported by expectations that the Reserve Bank of Australia maintains a relatively hawkish stance, especially compared with Japan’s still-accommodative policy environment. This ongoing policy divergence continues to underpin AUD/JPY, favouring buy-on-dips strategies rather than aggressive selling. 🔑 Key Technical Levels Resistance Zone: 106.68 – 106.84 Support Zone: 105.70 – 105.93 Bullish Invalidation: Below 105.61 📌 Trade Summary AUD/JPY is undergoing a healthy pullback within a broader bullish structure. As long as price holds above the 105.70 support zone, the technical bias favours a rebound toward the upper resistance band. The overall setup supports a buy-on-dips approach, rather than a bearish trend reversal. ⚠️ Disclaimer This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.