AUD/JPY has risen for the second consecutive trading day, trading around 93.60 in early European trading on Friday. Technical analysis on the daily chart shows that the pair remains within an ascending channel pattern, confirming the ongoing bullish bias.
The 14-day relative strength index (RSI) has crossed above 50, reinforcing the bullish sentiment. Moreover, the AUD/JPY cross continues to trade above the 9-day exponential moving average (EMA), indicating strong short-term price momentum.
On the upside, the AUD/JPY cross could approach the three-month high of 95.65 set on May 13. A break above this level could strengthen the bullish bias and support the pair to explore the area around the upper boundary of the ascending channel at 99.40.
The AUD/JPY cross is testing the immediate support of the nine-day moving average at 93.05, which coincides with the lower boundary of the ascending channel. A break below this channel could lead to the emergence of a bearish bias and put downward pressure on the currency cross to test the six-week low of 91.65 set on May 23.
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