AUD/JPY Price Forecast: Rises Above 114.50 as Bullish Technical Pattern Remains Intact

The AUD/JPY cross extended its strength during early European trading on Tuesday, currently trading around the 114.55 level. Better-than-expected Chinese economic data released earlier reinforced buying in the Australian dollar, which serves as a proxy for China, pushing the pair to hold near recent highs.

**Chinese Economic Data Boosts AUD Demand**

As Australia's most important trading partner, marginal improvements in Chinese economic data directly bolster risk appetite for the Australian dollar. Market reports indicate that the latest macro indicators exceeded expectations, alleviating some investor concerns over global demand prospects. Against this backdrop, the Australian dollar continued to find support against the Japanese yen, with the pair trading in positive territory since the Asia-Pacific session.

**Technical Pattern Maintains Bullish Structure**

From a chart perspective, the AUD/JPY pair has maintained its bullish technical structure after breaking above key resistance. Despite short-term profit-taking pressure, pullbacks have been limited, with solid support below. Market analysts note that as long as the current technical structure remains intact, the pair still has room for further upside.

**Focus Shifts to Risk Sentiment Changes**

However, the Japanese yen, as a traditional safe-haven currency, remains influenced by global risk sentiment. Should market risk aversion intensify later, it could cap the AUD/JPY upside momentum. Investors need to closely monitor geopolitical developments and shifts in major central bank policy expectations, as these factors will jointly determine the cross pair's directional path ahead.