AUD/JPY Price Forecast: Remains firm above 98.00, Takaichi wins majority in Lower House
AUD/JPY edges higher to around 98.25 in Tuesday’s early European session.
The cross keeps the bullish view in longer term, but further consolidation cannot be ruled out with neutral RSI indicator.
The first upside barrier is seen at 99.50; the initial support level is located at 97.25.
The AUD/JPY cross trades in positive territory near 98.25 during the early European session on Tuesday. The Japanese Yen (JPY) edges lower against the Australian Dollar (AUD) as the dovish Sanae Takaichi is poised to become the first female Prime Minister. Takaichi is set to be Japan’s first female Prime Minister after getting 237 votes in the Lower House, more than what's needed for a simple majority, BBC reported on Tuesday.
According to the daily chart, the positive view of AUD/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) hovers around the midline, indicating neutral momentum. This suggests that further consolidation cannot be ruled out before positioning for any near-term AUD/JPY appreciation.
On the bright side, the immediate resistance level for the cross emerges at 99.50, the high of October 14. The crucial upside target to watch is the 100.00 psychological level. Any follow-through buying could pave the way to the upper boundary of the Bollinger Band of 100.35.
On the downside, the crucial support level for AUD/JPY is located at 97.25, the low of October 16. The additional downside filter to watch is 96.70, the 100-day EMA. Further south, the next contention level is seen at 96.40, the lower limit of the Bollinger Band.
AUD/JPY daily chart
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