The AUD/JPY pair extended its gains to near 99.60 in Thursday’s European session, marking its ninth consecutive day of growth. Key drivers of this surge include:
- RBA’s Hawkish Outlook: The Reserve Bank of Australia (RBA) held interest rates steady at 4.35% but signaled it may not cut rates soon due to inflation concerns and a strong labor market.
- China’s Stimulus: China’s larger-than-expected economic stimulus boosts the Australian Dollar, as Australia is a major trading partner.
The pair’s upward momentum is reinforced by technical indicators:
- RSI: The 14-day Relative Strength Index has risen above 60, signaling bullish momentum.
- Resistance Levels: AUD/JPY is approaching the September 2 high of 99.87, with potential upside targets at the psychological level of 100.00 and the July 30 high of 101.78.
- Support Levels: On the downside, a fall below the September 25 low of 98.50 could lead to further declines toward the 20-day EMA at 97.40.
Investors are also awaiting Japan’s Tokyo CPI data, which could influence the Yen based on its impact on the Bank of Japan’s (BoJ) interest rate outlook.


