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AUD/JPY Climbs Despite Risk-Off Sentiment, Eyes 99.00

The AUD/JPY pair registered a 0.38% gain on Tuesday, defying a risk-off market environment as reflected in mild losses on Wall Street. Despite the bearish sentiment, risk-sensitive currencies like the Australian Dollar remained resilient. Lingering threats of intervention from Japanese authorities to strengthen the Japanese Yen (JPY) continue to limit bullish momentum on AUD/JPY, preventing fresh long positions that could push the pair towards its year-to-date (YTD) high at 100.17. Currently, the Relative Strength Index (RSI) indicates buyer dominance.

Technical Outlook: Key Resistance Levels

The first major resistance for AUD/JPY lies at the Tenkan-Sen at 99.17, followed by the YTD high. A sustained break above the YTD high could expose the psychologically significant 100.50 level, with further upside potential towards 101.00.

A bearish reversal could see sellers push prices below the Kijun-Sen at 98.53, potentially leading to a test of the 98.00 mark. If broken, the next support lies at the 50-day moving average (DMA) at 97.87, with further potential downside towards the Ichimoku Cloud (Kumo) top at 97.80.