• AUD/JPY may find its primary resistance at the eight-month high of 97.43.
• The 14-day Relative Strength Index is positioned above the 50 mark, indicating a bullish bias.
• The initial support zone appears at the ascending channel’s lower boundary around 96.60, followed by the nine-day EMA at 96.36.

AUD/JPY halts its winning streak that began on August 21, trading around 96.70 during the early European hours on Thursday. The technical analysis of the daily chart shows that the currency cross is positioned within the ascending channel pattern, suggesting a prevailing bullish bias.

The AUD/JPY cross remains above the nine-day Exponential Moving Average (EMA), indicating short-term price momentum is stronger. Additionally, the 14-day Relative Strength Index (RSI) is positioned above the 50 mark, indicating bullish market sentiment.

On the upside, the AUD/JPY cross may target the eight-month high at 97.43, which was recorded on July 15. A successful break above this level would support the currency cross to explore the area around the upper boundary of the ascending channel at 97.90, followed by the psychological level of 98.00.

The AUD/JPY cross is testing its immediate support at the ascending channel’s lower boundary around 96.60, followed by the nine-day EMA at 96.36. A break below this confluence support zone would weaken the short-term price momentum and put downward pressure to test the 50-day EMA at 95.72.

Further declines would lead the AUD/JPY cross to navigate the region around the two-month low of 94.40, recorded on August 20, followed by the three-month low of 93.97, which was recorded on July 1.

AUD/JPY: Daily Chart