AUD/JPY Price Analysis: Remains trapped between two key averages, awaits a range breakout

• AUD/JPY drops to test the 50-HMA, as sellers take over.
• Upside remains capped by the 21-HMA amid risk-off mood.
• RSI trades flat at the midline, suggesting a lack of clear direction.

AUD/JPY is lacking a clear directional bias after receding from higher levels, as the risk-off sentiment seeps back in Asia, with the S&P 500 futures down 0.20%.

The upbeat Chinese inflation figures failed to rescue the AUD bulls, as resurgent haven demand for the US dollar dominates ahead of the critical CPI and stimulus vote.

Markets also digest the latest cautious remarks from the RBA Governor Phillip Lowe, as he said earlier on that the board is to consider extending the bond purchase programme.

From a short-term technical perspective, as observed on the hourly sticks, the price is capped between the two key hourly moving averages (HMA), with the upside capped by the 21-HMA at 83.69 while the 50-HMA at 83.50 cushions the downside.

more to come ....