- AUD/JPY trades in positive territory for the sixth straight day on Friday.
- Relative Strength Index (RSI) holds above 50 in the bullish territory.
- The immediate resistance level emerges at 95.78; the initial support level is located at 94.23.
The AUD/JPY cross extends its upside for the sixth consecutive day during the Asian session on Friday. The cross trades around 95.31, gaining 0.36% on the day. The stronger-than-expected Chinese data boost antipodean currencies against its rivals.
On Friday, the National Bureau of Statistics (NBS) reported that Chinese Retail Sales for August improved 4.6% YoY compared to the previous reading of 2.5%, exceeding market expectations. In the meantime, the nation's Industrial Production rose to 4.5% in August from 3.7% in July, above market expectations of 3.9%. The China-proxy Australian Dollar (AUD) attracts some buyers in response to the data and acts as a tailwind for the AUD/JPY cross.
According to the daily chart, the path of least resistance for the AUD/JPY is to the upside as the cross holds above the 50- and 100-day Exponential Moving Averages (EMAs). Meanwhile, the Relative Strength Index (RSI) holds above 50 in the bullish territory, which supports the buyers for now.
Looking at the upside, the immediate resistance level for AUD/JPY emerges at 95.78 (a high of July 21). Any follow-through buying above the latter will see a rally to a high of July 4 at 96.85. The next upside stop to watch is a Year-To-Date (YTD) high of 97.62. en route to 98.00 (a psychological round mark) and finally at 98.43 (a high of Sep 12, 2022).
On the flip side, the cross will meet the initial support level near the 50-day EMA at 94.23. The next downside filter appears at 93.67, representing the 100-day EMA. A break below the latter will see a drop to the 93.00-93.10 region (a low of August 4 and round figure).
AUD/JPY daily chart
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