AUD/JPY Price Analysis: Climbs for 6-straight days on risk-on mood, RBA’s last week’s hike
- AUD/JPY nears weekly high at 94.22, gaining for the sixth consecutive day.
- The pair shows upward bias, but RSI and three-day RoC indicators suggest a potential retreat.
- Following support for AUD/JPY lies at a June 12 low of 93.84, followed by the 93.00 mark.
AUD/JPY stays on track toward its six straight days of gains as the Asian session begins. A risk-on impulse underpins the Australian Dollar (AUD), which is still gaining momentum after last week’s rate hike by the Reserve Bank of Australia (RBA). At the time of writing, the AUD/JPY trades at 94.22, nearby the weekly high of 94.41, with minuscule gains of 0.02%.
AUD/JPY Price Analysis: Technical outlook
The AUD/JPY daily chart portrays the pair as upward biased, at the brisk of breaking the November 16 high at 94.65, which could open the door for further upside. That would clear the path toward a new year-to-date (YTD) high and propel the Aussie towards challenging resistance at around the 95.00 psychological price level.
Even though the Ichimoku cloud supports the uptrend thesis, the Relative Strength Index (RSI) indicator signals the pair is overbought, warranting a pullback is expected. Another factor suggests the pair could retrace the three-day Rate of Change (RoC), showing that buying pressure is easing.
If AUD/JPY drops below 94.00, the following support to be tested would be the June 12 low of 93.84. Once cleared, the AUD/JPY next stop would be December’s 13 high turned support at 93.35 before testing the psychological 93.00 mark.