AUD/JPY Price Analysis: Plunges from YTD high to 84.30s on dismal market mood
- The AUD/JPY is on a free-fall so far, down 1.70% in the week.
- AUD/JPY Technical Outlook: Failure to break under 83.80 might resume the upward bias.
Tuesday’s price action for the AUD/JPY showed the pair extended its fall for the second straight day, after last week’s rally of 3%. However, increasing tensions between Russia-Ukraine, keep market players downbeat. At the time of writing, the AUD/JPY is trading at 84.15.
The global equity market extends its losses in the week. In the FX space, risk-sensitive currencies, particularly the AUD, collapsed vs. most G8 currencies.
AUD/JPY Price Forecast: Technical outlook
The price action in the AUD/JPY depicts the pair as upward biased, despite falling for two consecutive days. It is worth noting that the 50-day moving average (DMA) at 82.75 is rolling over the 100-DMA at 82.74, in a bullish order, with the shorter time-frame MAs above the 200-DMA at 82.25.
Tuesday’s daily low was 83.80 and pierced a three-month-old downslope trendline, previous resistance-turned-support, which pushed the pair above the 84.00 mark by the end of the North American session.
That said, the AUD/JPY first resistance would be January 5 high at 84.30. Breach of the latter would expose Pitchfork’s mid-line between the top and the 50% parallel line, around 85.00, followed by March 7 daily high at 85.50 and followed by the confluence of May 10. 2021, and Pitchfork’s top trendline around 85.80-86.00.
On the flip side, it would turn bearish in the near term if AUD/JPY trades below 83.00.
