AUD/JPY Price Analysis: Loses ground below the mid-97.00s following BOJ's Ueda comments

• AUD/JPY loses traction to 97.30 following the BoJ’s Ueda comments.
• The cross keeps the bullish vibe above the key EMA.
• The immediate resistance level will emerge at 97.76; the initial support level for AUD/JPY is seen at 97.24.

The AUD/JPY cross loses its recovery momentum during the early European session on Tuesday. The Japanese Yen (JPY) attracts some buyers following the Bank of Japan (BoJ) Governor Kazuo Ueda's speech. AUD/JPY currently trades near 97.30, up 0.01% on the day.

After the BoJ decided to maintain the policy settings and forward guidance unchanged at the January policy meeting, BoJ Governor Kazuo Ueda stated that the likelihood of achieving the 2% inflation target is rising gradually. He further added that the central bank must continue to monitor financial and foreign exchange market moves and their impact on prices and the economy.

Technically, the bullish outlook of AUD/JPY remains intact as the cross holds above the 50- and 100-period Exponential Moving Averages (EMA) with an upward slope on the four-hour chart. The downward momentum is supported by the Relative Strength Index (RSI) which stands above the 50-midline, indicating further upside looks favorable.

The immediate resistance level will emerge near a high of January 19 at 97.76. Any follow-through buying above the latter will see a rally to the upper boundary of the Bollinger Band at 97.90. Further north, the next hurdle is seen at a high of November 28 at 98.38, followed by a high of November 24 at 98.50.

On the flip side, the initial support level for AUD/JPY is seen at the 50-period EMA at 97.24. The key contention level for the cross is located in the 97.00–97.05 region, representing the confluence of the 100-period EMA and the limit of the Bollinger Band. The additional downside filter to watch is a low of January 18 at 96.83, en route to a low of January 16 at 96.60.

AUD/JPY four-hour chart