AUD/JPY posts modest losses around 96.75 in Friday’s early European session.
The positive outlook of the cross prevails above the 100-day EMA, with bullish momentum in the near term.
The first upside target is seen at 97.20; the initial support level is located at 96.56.
The AUD/JPY cross trades with mild losses near 96.75 during the early European session on Friday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) after US President Donald Trump signed an executive order on Thursday to lower Japanese auto import tariffs. The White House further stated that Japan is working toward the expedited implementation of a 75% increase in US rice procurements.
Technically, the constructive outlook of the cross remains in play, with the price holding above the key 100-day Exponential Moving Average (EMA) on the daily chart. Additionally, the upward momentum is reinforced by the 14-day Relative Strength Index (RSI), which stands above the midline near 59.50. This indicates bullish momentum in the near term.
The immediate resistance level for AUD/JPY emerges at 97.20, the upper boundary of the Bollinger Band. A run of green candles and steady trading above the mentioned level could open the door for a move toward 97.43, the high of July 15. The additional upside filter to watch is 98.45, the high of January 27.
On the flip side, if the cross draws in sellers and more red candlesticks show up, the price could head right back to 96.56, the low of September 4. Sustained trading below this level could expose 95.86, the low of August 29. The next contention level is located at 95.30, the 100-day EMA.
AUD/JPY Daily Chart
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