AUD/JPY closed Thursday's session with gains above 93.00

• The AUD/JPY peaked at a daily high of 93.45 on Thursday.
• The Aussie continues to get traction with the hawkish stance of the RBA.
• Cautious market mood and rumours of a BoJ intervention give traction to the Yen.

The AUD/JPY currency pair reached a daily high of 93.45 on Thursday, reflecting the strong performance of the Australian dollar. The hawkish stance of the Reserve Bank of Australia (RBA) has been a driving force behind the Aussie's gains. On the other hand, the Japanese yen is also finding support due to cautious market sentiment and rumours of potential interventions by the Bank of Japan (BoJ).

Aussie got traction on the back of RBA’s hawkish stance

The Australian dollar continues to gain from the surprise interest rate hike by the Reserve Bank of Australia. Governor Lowe emphasized on Wednesday following the announcement the importance of maintaining labour market achievements but clarified that sustained inflation increases will not be tolerated. The expectation of further rate hikes supports the Australian dollar's rise.

The JPY, on the other hand,  is finding further support from the recent expectations of further interventions by the BoJ to bolster the domestic currency. Additionally, the JPY's safe-haven appeal is benefiting from a cautious market sentiment due to concerns about a global economic slowdown, particularly in China. However, the recent weakness on Gross Domestic Product (GDP) reported on the early Asian session, fueled dovish bets on the BoJ which could limit the JPY’s upside potential.

AUD/JPY Levels to watch

From a technical perspective, the GBP/JPY pair currently shows a neutral to bullish outlook in the short term, although the bullish momentum appears to have paused, indicators still stand in positive territory.

In terms of resistance levels, the GBP/JPY pair faces upcoming resistance around 93.40 and above at the multi-month high of 93.50 struck on Wednesday. On the other hand, support to take into account line up at 93.00, 92.80 and 92.50.

AUD/JPY daily chart