AUD/JPY Price Forecast: Rallies above 93.00 on risk appetite, as bullish engulfing pattern looms

• AUD/JPY prints higher highs and lows; bullish engulfing pattern supports upside continuation.
• Daily close above 94.00 could open path toward 95.63, 97.32, and YTD high at 99.15.
• Failure to hold 93.00 may trigger drop toward 92.00 and Senkou Span B support at 90.83.

The AUD/JPY prolonged its gains on Thursday and edged up over 0.76% amid a risk-on impulse sparked by news that the US and China might reach an agreement as President Trump spoke with China's President Xi Jinping during the day. At the time of writing the cross-pair trades at 93.30.

AUD/JPY Price Forecast: Technical outlook

The AUD/JPY is upwardly biased, as the pair has formed a series of successive higher highs and lows, indicating that buyers are gathering momentum. Additionally, price action during the last two trading days formed a 'bullish engulfing' candle chart pattern, providing traders with two technical reasons the pair is tilted to the upside.

For a bullish continuation, the AUD/JPY needs a daily close above 94.00 if surpassed, the next stop will be the May 13 high of 95.63, followed by February's high at 97.32, ahead of the year-to-date (YTD) high of 99.15, the January 7 peak

Conversely, if AUD/JPY tumbles below 93.00, expect a drop to challenge May's 30 low of 92.00; a fall toward the Senkou Span B at 90.83 is on the cards.

AUD/JPY Price Chart - Daily