AUD/JPY is gaining momentum, trading near 97.40 during early European hours on Friday. The Japanese Yen (JPY) remains under pressure amid political uncertainty ahead of Japan’s Liberal Democratic Party (LDP) leadership election on Saturday. The new Prime Minister is expected to influence fiscal policy and guide the BoJ’s near-term stance, keeping the JPY volatile.
Technical outlook: bullish bias intact
The daily chart shows that AUD/JPY maintains a positive bias, supported above the 100-day Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI) hovers around the midline, suggesting near-term neutral momentum and the possibility of temporary consolidation or minor pullbacks.
Key levels to watch
Upside resistance is at the September 30 high of 98.15, followed by the Bollinger Band upper boundary near 98.40. A decisive break above this zone could open the path to the January 7 high at 99.17 and potentially test the psychological 100.00 level.
On the downside, initial support lies at 97.00, coinciding with the lower Bollinger Band. A breach below this level could expose 96.10 (100-day EMA), with further weakness targeting 95.63, the July 22 low.
