AUD/JPY Price Analysis: Drops to 93.00 key support despite firmer China data
|- AUD/JPY snaps two-day uptrend, holds lower ground of late.
- China’s Caixin Manufacturing PMI came in firmer but failed to project activity increase in November.
- Convergence of 50-HMA, ascending trend line from Tuesday restricts immediate downside.
- 200-HMA, Fortnight-old resistance line and bearish MACD signals challenge recovery moves.
AUD/JPY struggles to justify upbeat China activity numbers during early Thursday as sellers poke short-term key support around 93.00 by the press time.
China’s Caixin Manufacturing PMI rose to 49.4 in November versus 48.9 market forecasts and 49.2 previous readings. Even so, the private activity gauge remains in the contraction region for the fourth consecutive month.
As a result, the bears poke a convergence of the 50-HMA and a three-day-old ascending support line near 93.00.
In addition to the data, the cross-currency pair’s downside break of the 200-HMA, around 93.45 by the press time, also keeps the AUD/JPY bears hopeful, not to forget the bearish MACD signals and a U-turn from the fortnight-long resistance line.
Due to these signals, the AUD/JPY price is likely to break the 93.00 support confluence and can poke the latest trough surrounding 92.15.
However, any further downside past 92.15 could make the pair vulnerable to challenging October’s low near 90.85.
On the contrary, recovery moves need a clear upside break of the 200-HMA level surrounding 93.45 before challenging the aforementioned resistance line, close to 93.80 at the latest.
Following that, multiple hurdles around 94.00 and 94.10 could challenge the AUD/JPY bulls before giving them control.
AUD/JPY: Hourly chart
Trend: Limited downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.