AUD/JPY Price Analysis: Soars to 1 ½ month high; is 96.00 on the horizon?

• AUD/JPY rallies to 95.64, its highest level in one-and-a-half months, buoyed by RBA’s latest monetary policy minutes.
• Following resistance levels in sight: July 25 swing high at 95.85 and the psychological 96.00 mark.
• Downside risks remain, with key support levels at the Ichimoku Cloud top at 94.74 and the Tenkan-Sen line at 94.60.

The AUD/JPY printed solid gains on Tuesday, and as Wednesday’s Asian session begins, the cross-currency pair hovers around 95.39 after touching a new one-and-a-half-month high at 95.64.

The AUD/JPY daily chart portrays the pair as neutral to upward biased. Even though it formed a ‘bearish-harami’ until yesterday, the cross-currency pair extended its gains due to fundamental news, such as the latest Reserve Bank of Australia (RBA) monetary policy minutes. Discussions amongst the RBA members kept the door open for additional tightening and sparked Tuesday’s rally.

Hence, the AUD/JPY extended its gains and is set to test the July 25 swing high at 95.85. A breach of the latter would expose the 96.00 mark, followed by last year’s high at 97.67. Conversely, if the cross retreats below 95.00, the next support would emerge at the top of the Ichimoku Cloud (Kumo) at 94.74, followed by the Tenkan-Sen line at 94.60, and followed by the Kijun-Sen at 94.21.

AUD/JPY Price Action – Daily chart

AUD/JPY Technical Levels