• AUD/JPY struggles to extend intraday gains after refreshing seven-year high.
• Overbought RSI, bearish candlestick formation joins downbeat China data to challenge upside momentum.
• Bears need a clear break of five-week-old support line to retake control.

AUD/JPY dribbles around the highest levels since 2015 during Friday’s Asian session, despite the overbought RSI conditions and Thursday’s Doji. That said, the cross-currency pair grinds higher around 97.50 by the press time.

In addition to the candlestick and RSI, the downbeat prints of inflation data Australia’s key customer China also weigh on the AUD/JPY prices.

China’s Consumer Price Index (CPI) and Producer Price Index (PPI) both print unwelcome numbers for August. That said, the headline CPI eased to 2.5% YoY versus 2.8% market forecasts and 2.7% prior while the PPI dropped to 2.3% compared to 3.1% expected and 4.2% prior.

That said, pullback moves may initially aim for the tops marked in June and April, respectively near 96.90 and 95.75. However, AUD/JPY bears remain unconvinced beyond the upward sloping support line from early August, at 95.73 by the press time.

Alternatively, the 98.00 round figure seems to lure the pair buyers before directing them towards an upward sloping resistance line from April, near 98.75 by the press time.

Following that, the 99.00 and the 100.00 thresholds will gain the AUD/JPY bull’s attention.

AUD/JPY: Daily chart

Trend: Limited upside expected