AUD/JPY Stays Strong Above 100.00, But Overbought Levels Show Caution
The AUD/JPY pair stayed firm around 100.35 on Friday, holding above the key 100.00 level. The pair is still showing a bullish trend, but signs of being overbought suggest that a small pullback could happen soon.
The Relative Strength Index (RSI) is now above 73, which means the market might be getting overheated. Traders are becoming careful as the pair has been rising for several sessions.
The Japanese yen (JPY) stayed weak after Japan’s new Prime Minister, Sanae Takaichi, hinted that the Bank of Japan is not in a rush to raise interest rates. This helped the Australian dollar (AUD) stay strong.
On the chart, the 100-day EMA is giving strong support. If the price moves above 101.00, it could test 102.30 or 103.48 next. If it drops, the first support is near 99.15, followed by 98.35.
Impact:
The AUD/JPY pair might stay strong above 100.00 but could face a small correction before the next upward move.