The AUD/JPY cross extends its decline to around 100.00 during the early European session on Friday. The Japanese Yen (JPY) climbs against the Australian Dollar (AUD) after comments from Japan’s ministers earlier in the day.
Japan’s new economy minister Ryosei Akazawa said on Friday that the timing of changes in the Bank of Japan’s (BoJ) monetary policy should be aligned with the broader goal of exiting deflation. Additionally, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi announced on Friday that new Prime Minister Shigeru Ishiba has instructed the compilation of a comprehensive economic package. Hayashi added that he will submit a supplementary budget to Parliament after the lower house election.
According to the 4-hour chart, the positive outlook of the AUD/JPY cross prevails as the cross holds above the key 100-period Exponential Moving Averages (EMA). However, the further consolidation cannot be ruled out as the Relative Strength Index (RSI) hovers around the midline, suggesting the neutral momentum of the cross.
The immediate resistance level emerges near the high of October at 100.73. Further north, the next upside barrier is seen at 101.35, the upper boundary of the Bollinger Band. The additional upside filter to watch is the 102.00 psychological mark.
On the downside, the 99.00 psychological level acts as an initial support level for the cross. Any follow-through selling below this level will see a drop to the 98.45-98.65 region, representing the 100-period EMA and the lower limit of the Bollinger Band. Extended losses will see the next downside target at 97.63, the low of September 23. AUD/JPY 4-hour chart(Click on image to enlarge)More By This Author:GBP/USD Trades With Mild Gains Above 1.3100, Focus On US NFP Data WTI Drifts Higher Above $70.50 On Fears Over Middle East Supply Disruptions USD/CAD Drifts Higher To Near 1.3500 Amid Geopolitical Risks
