AUD/JPY extends gains around 97.35 in early European trading on Thursday, as risk-on sentiment continues to weigh on the Japanese Yen (JPY) while supporting the higher-yielding Australian Dollar (AUD).
Technical outlook: buyers defend key support
The bullish bias for AUD/JPY remains intact with the pair trading comfortably above its 100-day Exponential Moving Average (EMA) on the daily chart. However, the 14-day Relative Strength Index (RSI) is hovering near the midline, signaling neutral momentum and the possibility of short-term consolidation.
On the upside, resistance is seen at 98.15—the September 30 high. A sustained break above this barrier could open the way toward 98.45, the upper boundary of the Bollinger Band, followed by the January 7 peak at 99.17. A rally beyond that level would expose the 100.00 psychological threshold.
Key levels to watch
- Resistance: 98.15, 98.45, 99.17, 100.00
- Support: 96.85, 96.12 (100-day EMA), 95.63
The cross retains a constructive outlook as long as it holds above 97.00, with dips likely to attract fresh buying interest.
