AUD/JPY Price Analysis: Probes the 200-DMA around 92.00
|- Risk aversion weighed on the Australian Dollar, bolstering the safe-haven status of the Japanese Yen.
- AUD/JPY Price Analysis: Break below the 200-day EMA to exacerbate a fall towards 90.00.
The Australian Dollar (AUD) losses ground against the Japanese Yen (JPY) amid a risk-off impulse as the prospects for a recession in the United States (US) increased, blamed on a worst-than-expected US ISM PMI, and flashed manufacturing activity is deteriorating. At the time of writing, the AUD/JPY is trading at 92.16.
AUD/JPY Price Analysis: Technical outlook
The AUD/JPY daily chart portrays the pair trading within a descending channel, with the 20, 50, and 100-day Exponential Moving Averages (EMAs) sitting above the exchange rate, further confirming the downtrend. Additionally, the AUD/JPY Thursday close below the former weekly low of 92.14, has paved the way for additional losses.
Oscillators with the Relative Strength Index (RSI) at bearish territory, and the 9-day Rate of Change (RoC) aiming downwards, suggests bears are gathering momentum. Therefore, the AUD/JPY path of least resistance is downwards.
The AUD/JPY key support levels are the 200-day EMA at 91.99, followed by the October 13 swing low of 90.83, followed by the August 2 pivot low of 90.52, ahead of the 90.00 figure.
As an alternate scenario, the AUD/JPY first resistance would be the 93.00 figure. Break above will open the AUD/JPY path to the confluence of the 20 and 100-day EMA at 93.40/60, ahead of the 50-day EMA at 93.78
AUD/JPY Key Technical Levels
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.