AUD/JPY Price Analysis: Keeps uptrend intact despite overbought signals, nearby YTD high

• AUD/JPY trades near YTD high, yet RSI hints at overbought conditions.
• Potential resistance at October 2021 high; 96.00 mark eyed in a continued uptrend.
• Support could emerge around 94.50/65, followed by the Tenkan-Sen line if a drop ensues.

The AUD/JPY continues its uptrend, though at a steady pace, as it remains above the Ichimoku Cloud, but technical oscillators, such as the Relative Strength Index (RSI), suggest the pair might be at an overbought area. Therefore, the AUD/JPY is trading at 95.18, slightly below the year*to-date (YTD) high reached on Wednesday at 95.28.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY continued to trend higher amidst a Federal Reserve (Fed) pause but was slightly hawkish as policymakers revised the bank’s rates. That shifted sentiment, as Wall Street finished the session mixed, but on the FX space, the AUD/JPY held to its gain, though after a choppy trading session.

As mentioned above, the AUD/JPy pair is in overbought territory. Still, In the case of continuing to uptrend, the next resistance would be October 2021 high at 95.74, ahead of the psychological 96.00 mark. Conversely, if AUD/JPY drops below 95.00, the next support will emerge as a top-trend line of an ascending channel around 94.50/65, which could cushion the pair’s drop. A decisive break will expose the Tenkan-Sen line at 93.70 before dropping to the Kijun-Sen at 92.54s.

AUD/JPY Price Action – Daily chart