AUD/JPY Forecast: Hits Fresh 5-Month Highs Near 97.00 as Bullish Momentum Builds

The AUD/JPY pair continues its upward trajectory, climbing to new five-month highs near the 97.00 psychological level in Friday’s Asian session. Strong bullish momentum, driven by technical strength and improved risk sentiment, keeps the cross well-supported.

Technical Outlook: AUD/JPY Maintains Bullish Bias Within Ascending Channel

AUD/JPY currently trades around 96.70, extending gains for the second consecutive session. The daily chart shows the pair firmly holding within an ascending channel pattern, reinforcing the prevailing bullish structure.

The 14-day Relative Strength Index (RSI) is hovering near 70, suggesting overbought conditions. While this signals strong momentum, it also warns of a potential short-term correction. Still, the cross remains well above the 9-day Exponential Moving Average (EMA) at 95.59, which continues to act as immediate support.

Upside Targets: Key Resistance Levels in Focus

The pair is now testing the upper boundary of the ascending channel around 96.90. A decisive breakout above this level could open the door for a test of the key psychological barrier at 97.00. A sustained move above 97.00 would likely confirm the continuation of the bullish trend.

Support Levels to Watch

On the downside, immediate support is seen at the 9-day EMA at 95.59. A break below this level could trigger further pullback toward the lower boundary of the channel at 94.80. Deeper support rests near the 50-day EMA, currently positioned at 94.15.

Summary:

The near-term outlook for AUD/JPY remains bullish, but overbought RSI readings suggest traders should watch for possible consolidation or correction. A breakout above 97.00 could pave the way for further upside, while failure to hold above 95.59 might lead to short-term weakness.

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