Bullish RSI indicates room for growth before hitting overbought conditions.
Key levels: Resistance at Tenkan-Sen (102.42) and support at Kijun-Sen (101.36).
The AUD/JPY extends its gains for the fifth day in a row, climbs 0.30%, and trades at 102.35. Market sentiment remains upbeat, which usually weighs on the Japanese Yen (JPY) safe-haven appeal, which remains the laggard in the Forex markets against other peers.
After reaching a year-to-date (YTD) high at 104.95, the AUD/JPY retreated towards 100.00, following a confirmed intervention by the Bank of Japan (BoJ). Since then, the pair has extended its gains, though it faces solid resistance at the Tenkan-Sen at 102.42.
Momentum favors buyers, with the Relative Strength Index (RSI) standing at bullish territory, aiming upwards with enough room before hitting overbought territory.
If AUD/JPY buyers want to re-test the YTD high, they must clear the Tenkan-Sen. Once surpassed, the 103.00 figure would emerge as the next stop, ahead of testing April’s 26 high at 103.47. Up next would be 104.00, followed by the YTD high.
On the other hand, buyers’ failure to crack the Tenkan-Sen can pave the way for sellers to step in and push prices lower. The first support would be the 102.00 mark, followed by the Kijun-Sen at 101.36. Further losses are seen at the May 3 low at 100.45, followed by the 100.00 figure.
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