• AUD/JPY oscillates in a range below a fresh monthly top touched earlier this Tuesday.
• The mixed technical setup warrants some caution before positioning for further gains.
• A sustained strength beyond the 100 confluence will be seen as a fresh trigger for bulls.

The AUD/JPY cross seesaws between tepid gains/minor losses through the first half of the European session and now seems to have stabilized around mid-98.00s, just below the monthly peak touched earlier this Tuesday. 

The Japanese Yen (JPY) continues with its volatile two-way price moves amid domestic political uncertainty, which could hinder the Bank of Japan's (BoJ) plan to steadily lift interest rates from near zero. This, in turn, fails to assist the AUD/JPY cross to build on the overnight modest gains and leads to subdued range-bound price action. That said, the prevalent risk-on mood continues to undermine the safe-haven JPY, which, along with the Reserve Bank of Australia's (RBA) hawkish stance, acts as a tailwind for the currency pair. 

From a technical perspective, the AUD/JPY cross is holding comfortably above the 38.2% Fibonacci retracement level of the July-August downfall. This, in turn, supports prospects for an extension of the recent strong recovery from the vicinity of the 90.00 psychological mark, or the lowest level since May 2023 touched earlier this month. That said, mixed oscillators on the daily chart warrant some caution for bullish traders. Hence, any subsequent move up is more likely to remain capped near the 100.00 confluence resistance