AUD/JPY Price Analysis: Extends winning streak for ninth trading session

• AUD/JPY remains firms on multiple tailwinds.
• The RBA left its key interest rates steady at 4.35% on Tuesday.
• Investors await Japan's Tokyo CPI data for fresh BoJ's interest rate outlook.

The AUD/JPY pair rises further to near 99.60 in Thursday's European session. The cross extends its winning spell for the ninth trading day on Thursday as the Australian Dollar (AUD) performs strongly on multiple tailwinds such as: Reserve Bank of Australia's (RBA) hawkish interest rate outlook and China's larger-than-expected monetary stimulus.

After leaving the Official Cash Rate (OCR) unchanged at 4.35% on Tuesday, the comments from the RBA indicated that it is unlikely to start reducing interest rates this year due to sticky price pressures and upbeat labor market health.

In addition to the RBA's hawkish guidance, the announcement of a slew of stimulus packages by China has also strengthened the AUD's outlook. It is worth noting that the Australia is the leading trading partner of China and an attempt to revive the Chinese economy will have a positive impact on the Australian Dollar.

Meanwhile, the Japanese Yen (JPY) will be guided by the Tokyo Consumer Price Index (CPI) data for August, which will be published on Friday. The Tokyo CPI excluding Fresh Food is estimated to have grown by 2%, slower than 2.4% in July. This would dampen market expectations for the Bank of Japan (BoJ) to hike interest rates further.

AUD/JPY gathers strength to break above the horizontal resistance plotted from September 2 high of 99.87 on a daily timeframe. Given a nine-day winning spree, the risk-barometer would thrash the immediate resistance. Upward-sloping 20-day Exponential Moving Average (EMA) near 97.40 suggests that the near-term trend is bullish.

The 14-day Relative Strength Index (RSI) has climbed above 60.00. A bullish momentum would trigger if the oscillator sustains above the same.

Going forward, a decisive break above September 2 high of 99.87 will result in further upside in the asset towards the psychological resistance of 100.00 and July 30 high of 101.78.

On the flip side, a downside move below September 25 low of 98.50 would drag the asset towards the 20-day EMA, which is currently trading around 97.40, followed by September 12 high near 95.70.

AUD/JPY daily chart