AUD/JPY extended its pullback toward 97.80 in Wednesday’s Asian session, as the Japanese Yen (JPY) gained ground on expectations that the Bank of Japan (BoJ) will maintain its path of policy normalization despite political uncertainty at home. A cautious risk tone in broader markets further supported the safe-haven currency.
Technical outlook: bullish structure holds
From a technical perspective, the constructive bias for AUD/JPY remains valid as long as the pair trades above 97.50. The cross continues to find support above the 100-day Exponential Moving Average (EMA) on the daily chart, while the 14-day Relative Strength Index (RSI) hovers above the neutral 50 line at 62.65, signaling firm bullish momentum.
Key resistance is seen at 98.65, the upper boundary of the Bollinger Band. A sustained break above this level would expose 99.17, the January 7 high, with scope to challenge the 100.00 psychological barrier on further upside extension.
On the downside, initial support lies at 97.01, the September 10 low. A move below this level would bring 96.31 (September 5 low) into focus, followed by the 100-day EMA near 95.70, which acts as a critical downside filter for the broader bullish structure.
