AUD/JPY Trading Dynamics: What's Next After the Kijun-Sen Hurdle? | Key Levels to Watch at 97.00 and 96.18

●The AUD/JPY cross demonstrates 0.08% depreciation during Tuesday's Asian session, stabilizing around 96.68 following rejection from 96.85

●Technical framework remains balanced, with decisive moves above 96.81 potentially accelerating momentum toward the 97.00 psychological threshold

●Failure to overcome Tenkan-Sen resistance may invite bearish pressure, with immediate downside focus at Monday's swing low of 96.18

Market participants observed cautious price action in AUD/JPY during early Asian hours, with the pair retreating modestly from weekly highs as risk sentiment softened ahead of crucial US inflation data. The current 96.68 trading level reflects 0.08% depreciation from Monday's close, following unsuccessful attempts to sustain gains above 96.85.

Technical analysis reveals compelling dynamics around the 96.81 Tenkan-Sen level, which continues to cap upside attempts. A confirmed breakout above this resistance could unlock progression toward the 97.00 round number, with potential extension toward the year-to-date peak at 97.63. Conversely, rejection from current levels might prompt retracement toward immediate support at 96.18, established during Monday's trading session.

The Ichimoku Cloud configuration adds further context to price action, with the Kijun-Sen baseline at 95.83 and cloud top at 95.00 representing significant support zones should bearish momentum intensify. Market technicians will monitor whether the pair can maintain its position above the conversion line to preserve near-term bullish potential.

AUD/JPY Technical Outlook - Daily Chart Perspective