AUD/JPY Price Analysis: A tweezers bottom emerges as bulls meander around 92.00

The Australian Dollar (AUD) recovered some of its lost ground against the Japanese Yen (JPY) and rises, aligned with risk-perceived assets, bolstered by the US Federal Reserve (Fed) decision to raise rates by a quarter of a percentage, to 4.50% - 4.75% range, with the market’s perception of a dovish Fed. At the time of writing, the AUD/JPY exchanges hands at 91.99 after hitting a daily low of 91.21, above its opening price by 0.31%.

AUD/JPY Price Analysis: Technical outlook

After the Fed’s decision, the AUD/JPY pair rebounded off the day’s low at 91.21, as market sentiment remained sour ahead of the Fed’s meeting. Once the headlines crossed newswires and Powell’s presser began, the AUD/JPY edged up, clearing on its way north the 50, 200, and 100-day Exponential Moving Averages (EMAs), each at 91.31, 91.55, and 91.95, respectively.

As the New York session is about to end, an AUD/JPY close above the 100-day EMA will exacerbate a rally towards the January 26 swing high at 92.81. Once the spot price claims above the latter, the 93.00 figure would be next; after that, the December 13 daily high at 93.35 would be tested.

As an alternate scenario, the AUD/JPY first support would be the 200-day EMA at 91.55. Break below would send the pair sliding towards the 50-day EMA At 91.33, ahead of the February 1 low at 91.21.

AUD/JPY Key Technical Levels