AUD/JPY Price Analysis: Surges to six-day high amid risk-on sentiment

• AUD/JPY rises late in the session, supported by a risk-on sentiment fueled by Wall Street's advance.
• Buyers in control as the pair surpasses 97.00, aiming for a daily close above 98.00 for further gains.
• Despite the ascent, pullback risks persist; sellers may target levels below 97.00 for bearish momentum.

AUD/JPY edges higher late in Friday’s North American session, sponsored by a risk-on impulse, as the advance in Wall Street could appreciate it. Therefore, safe-haven peers are pressured while US Treasury yields retrace, a tailwind for riskier assets. At the time of writing, the AUD/JPY exchanged hands at 97.79, printing a new six-day high.

The pair began the week at around the lows of the week, below the Tenkan-Sen, but the AUD/JPY exchange rate was already above the Ichimoku Cloud (Kumo), suggesting that buyers were in charge. Consequently, they reclaimed 97.00 and, on Friday, extended its gains. Still, pullback risks remain, as buyers need a daily close above the 98.00 figure so they can remain hopeful of testing last year’s high of 98.58. Once those levels are surpassed, the next stop would be the 99.00 figure.

For a bearish case, sellers need to drive prices below 97.00, through the Tenkan Sen at 96.97, toward the January 16 low of 96.58. A breach of the latter will expose the Kijun-Sen at 96.18, ahead of the Senkou Span B and A, each at 96.14 and 96.01.

AUD/JPY Price Action – Daily Chart

AUD/JPY Key Technical Levels