- The AUD/JPY pair dipped to near 100.00 during Friday's early Asian session, showing a decline of 0.50% for the day.
- While the cross maintains a bullish outlook above the critical 100-period EMA, the RSI indicator reflects neutral momentum.
- Immediate resistance is positioned at 100.73, while the first downside target appears at the psychological level of 99.00.
The AUD/JPY pair continued its decline to around 100.00 during the early European session on Friday, with the Japanese Yen (JPY) strengthening against the Australian Dollar (AUD) following remarks from Japanese officials earlier in the day.
Japan's new economy minister, Ryosei Akazawa, stated on Friday that any changes in the Bank of Japan's (BoJ) monetary policy should align with the broader objective of exiting deflation. Additionally, Japan's Chief Cabinet Secretary, Yoshimasa Hayashi, revealed that new Prime Minister Shigeru Ishiba has directed the compilation of a comprehensive economic package and plans to submit a supplementary budget to Parliament after the lower house election.
According to the 4-hour chart, the AUD/JPY pair maintains a positive outlook, remaining above the critical 100-period Exponential Moving Averages (EMA). However, further consolidation cannot be dismissed as the Relative Strength Index (RSI) hovers around the midline, indicating neutral momentum for the pair.
Immediate resistance is identified near the October high of 100.73. Beyond that, the next upside target is at 101.35, the upper boundary of the Bollinger Band. Another key resistance level to monitor is the psychological mark of 102.00.
On the downside, the 99.00 psychological level serves as initial support for the cross. A sustained move below this level could lead to a decline towards the 98.45-98.65 region, corresponding to the 100-period EMA and the lower limit of the Bollinger Band. Further losses could target the next downside level at 97.63, the low from September 23.
AUD/JPY 4-hour chart
