AUD/JPY Slips in Early European Session, Trading Near 97.30
The AUD/JPY cross experienced a dip in recovery momentum during the early European session on Tuesday. The Japanese Yen (JPY) attracted buyers following a speech by Bank of Japan (BoJ) Governor Kazuo Ueda. As of now, AUD/JPY is trading near 97.30, reflecting a modest 0.01% gain for the day.
In the aftermath of the January policy meeting where the BoJ maintained policy settings and forward guidance, Governor Kazuo Ueda remarked that the likelihood of achieving the 2% inflation target is gradually increasing. He emphasized the importance of the central bank monitoring financial and foreign exchange market movements and their potential impact on prices and the economy.
From a technical perspective, the bullish outlook for AUD/JPY remains intact. The cross is holding above the 50- and 100-period Exponential Moving Averages (EMA) on the four-hour chart, supported by an upward slope. The Relative Strength Index (RSI) is positioned above the 50-midline, indicating favorable upside potential.
The immediate resistance for AUD/JPY is expected near the January 19 high at 97.76, with a potential rally towards the upper boundary of the Bollinger Band at 97.90. Further upward challenges lie at the November 28 high of 98.38, followed by the November 24 high at 98.50.
On the downside, initial support is identified at the 50-period EMA at 97.24. The crucial support zone lies in the 97.00–97.05 region, marked by the confluence of the 100-period EMA and the Bollinger Band limit. Additional downside levels to monitor include the January 18 low at 96.83, en route to the January 16 low at 96.60. Traders will keep a close eye on these technical levels for potential shifts in market dynamics.
