Attracting some sellers near 100.00, further consolidation cannot be ruled out

• AUD/JPY eases to near 100.00 in early Asian session on Friday, down 0.50% on the day.
• The cross maintains the bullish vibe above the key 100-period EMA, but the RSI indicator shows neutral momentum.
• The immediate resistance level is located at 100.73; the first negative target appears at the psychological level of 99.00.

The AUD/JPY cross extends its decline to around 100.00 during the European session on Friday. The Japanese yen (JPY) is rising against the Australian dollar (AUD) after comments from Japanese ministers earlier in the day.

New Japanese Economy Minister Ryosei Akazawa said on Friday that the timing of changes in the Bank of Japan’s (BoJ) monetary policy should be aligned with the broader goal of exiting deflation. In addition, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi announced Friday that new Prime Minister Shigeru Ishiba has ordered a comprehensive economic package. Hayashi added that he would submit a supplementary budget to Parliament after the lower house elections.

According to the 4-hour chart, the positive outlook for the AUD/JPY cross is prevailing as the cross is holding above the 100-period exponential moving averages (EMA). However, further consolidation cannot be ruled out as the relative strength index (RSI) is hovering around the median line, suggesting neutral cross momentum.

The immediate resistance level appears near the October high at 100.73. Further north, the next upside barrier is seen at 101.35, the upper limit of the Bollinger Band. The additional filter to watch is the 102.00 psychological mark.

On the downside, the 99.00 psychological level acts as an initial support level for the cross. Any further selling below this level will see a decline in the 98.45-98.65 region, representing the 100-period EMA and the lower bound of the Bollinger Band. Extended losses will see the next downside target at 97.63, the September 23 low.

AUD/JPY 4 Hour Chart