• AUD/JPY grinds higher at six-week top after crossing a horizontal hurdle since late March.
• Bullish MACD, resistance break directs buyers towards the yearly peak but RSI has limited room before turning overbought.
• RBA is likely to hike the benchmark interest rate by 25 basis points (bps).

AUD/JPY edges higher around the highest levels since late April, after crossing the 2.5-month-old horizontal hurdle. That said, the cross-currency pair dribbles near 94.90 as traders prepare for the Reserve Bank of Australia’s (RBA) second rate hike, widely expected to be of 0.25%.

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In addition to the pair’s successful break of horizontal resistance, now support around 94.30-40, bullish MACD signals also keep AUD/JPY buyers hopeful.

However, the RSI (14) speedily approaches the overbought territory, suggesting limited upside room for the AUD/JPY prices.

Hence, the pair’s run-up beyond the yearly peak of 95.75 appears difficult, unless the RBA offers a major positive surprise.

Should the quote manage to rise past 95.75, its run-up towards the May 2015 high surrounding 97.30 can’t be ruled out.

Meanwhile, pullback moves need to break the 94.30 support to convince sellers. Even so, 50-DMA and an ascending support line from May 12, respectively around 92.10 and 91.60, could challenge the AUD/JPY bears.

Following that, the pair sellers may aim for the 90.00 psychological magnet ahead of challenging the 38.2% Fibonacci retracement of December 2021 to April 2022 upside, around 89.30.

AUD/JPY: Daily chart

Trend: Limited upside expected