AUD/JPY Price Analysis: Remains confined near 95.00 following RBA Meeting Minutes

The AUD/JPY cross remains confined around 94.95-95.20 in a narrow trading band during the Asian trading hours on Tuesday. The cross currently trades near 94.98, losing 0.03% on the day.

On Tuesday, the release of the Minutes from the Reserve Bank of Australia's (RBA) September monetary policy meeting revealed that additional tightening may be necessary if inflation proves more persistent than anticipated. However, the case for maintaining the status quo was stronger, and recent data have not materially altered the economic outlook.

According to the four-hour chart, the path of least resistance for the AUD/JPY is to the upside as the cross holds above the 50- and 100-hour 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 near the upper boundary of the Bollinger Band at 95.48. Any follow-through buying above the latter will see a rally to 95.78 (a high of July 21), followed by a high of July 4 at 96.85. The next barrier to watch is a Year-To-Date (YTD) high of 97.62. en route to 98.00 (a psychological round mark).

On the flip side, the cross will meet the initial support level near the 50-day EMA at 94.72. The next downside filter appears at 94.65 (the lower limit of the Bollinger Band) en route to 94.50 (the 100-hour EMA). A break below the latter will see a drop to a psychological round figure at 94.00.

AUD/JPY four-hour chart