• AUD/JPY strengthened on Monday as the yen weakened as investors continued to assess the Bank of Japan's interest rate outlook.
• A summary of opinions from the Bank of Japan's December policy meeting revealed that some policymakers are becoming more confident about the possibility of an imminent interest rate hike.
• Some Bank of Japan policymakers noted that conditions are aligning for an imminent rate hike, with one predicting a move soon, maintaining the possibility of a rate increase in January.
• The BOJ kept interest rates at 0.25% this month, with Governor Kazuo Ueda citing the need to assess next year's wage trends and the U.S. administration's economic policies.
• Technical signals are pointing uptrend as RSI has turned higher , daily momentum studies 5, 9 and 11 DMAs are trending up
• Immediate resistance is located at 98.85 (23.6% fib), any close above will push the pair towards 99.19(Higher BB).
• Immediate support is seen at 97.67(38.2% fib) and break below could take the pair towards 96.73 (50% fib).
Recommendation: Good to buy around 98.30, with stop loss of 97.70 and target price of 99.00
