AUD/JPY edges lower to around 97.80 in Wednesday’s early European session.
The cross maintains a positive outlook, with the bullish RSI condition.
The immediate resistance level is seen at 98.65; the initial support level is located at 97.01.
The AUD/JPY cross extends the decline to near 97.80 during the Asian trading hours on Wednesday. The growing expectation that the Bank of Japan (BoJ) will stick to its policy normalization path despite domestic political uncertainty supports the Japanese Yen (JPY) against the Australian Dollar (AUD). Also, the cautious mood in the financial markets contributes to the JPY’s upside.
Technically, the positive view of AUD/JPY remains in play as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The path of least resistance is to the upside, with the 14-day Relative Strength Index (RSI) standing above the midline near 62.65. This suggests the bullish momentum in the near term.
On the bright side, the key upside barrier for the cross emerges at 98.65, the upper boundary of the Bollinger Band. Further north, the next hurdle is seen at 99.17, the high of January 7. A decisive break above this level could pick up more momentum and aim for the 100.00 psychological level.
On the other hand, the low of September 10 at 97.01 acts as an initial support level for AUD/JPY. Any follow-through selling below this level could expose 96.31, the low of September 5. The additional downside filter to watch is 95.70, the 100-day EMA.
AUD/JPY daily chart
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
