AUD/JPY Price Analysis: Bears occupy driver’s seat below 89.00 ahead of Australia inflation

AUD/JPY seesaws within a tight range near the lowest levels in a fortnight after falling the most in six weeks.
Clear downside break of 50-DMA, one-month-old ascending trend line keeps sellers hopeful.
Looming bear cross on MACD also signals AUD/JPY downside as Australia’s Consumer Price Index data for Q1 and March loom.

Anil Panchal FXStreet

AUD/JPY licks its wounds at the lowest levels in two weeks as the pair traders await Australia’s headline inflation data during early Wednesday. That said, the cross-currency pair seesaws around 88.70 after falling the most in six weeks the previous day.

The quote’s heavy fall on Tuesday could be linked to a break of the one-month-old ascending trend line and the 50-DMA. Adding strength to the downside bias could be the impending bear cross. However, the RSI (14) line is below 50 and hence suggests some bottom-picking in case the Aussie data offers a positive surprise.

As a result, the monthly low of around 87.60 gains major attention ahead of the late 2022 low of near the 87.00 round figure.

Following that, a south run towards refreshing the yearly low, currently around 86.05 can’t be ruled out.

On the flip side, the 21-DMA restricts immediate advances of the AUD/JPY pair around 89.25.

Should the quote rises past 21-DMA, the 50-DMA hurdle of around 89.75 and the previous support line surrounding 89.90 will precede the 90.00 psychological magnet to challenge the AUD/JPY pair buyers.

Even if the quote rises past the 90.00 round figure, a downward-sloping resistance line from September 2022, near 90.60, will be the key hurdle for the AUD/JPY bulls to cross before retaking control.

AUD/JPY: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	88.69
Today Daily Change	-1.19
Today Daily Change %	-1.32%
Today daily open	89.88

Trends
Daily SMA20	89.24
Daily SMA50	89.92
Daily SMA100	90.38
Daily SMA200	92.32

Levels
Previous Daily High	90.05
Previous Daily Low	89.42
Previous Weekly High	90.78
Previous Weekly Low	89.4
Previous Monthly High	92.25
Previous Monthly Low	86.06
Daily Fibonacci 38.2%	89.81
Daily Fibonacci 61.8%	89.66
Daily Pivot Point S1	89.52
Daily Pivot Point S2	89.16
Daily Pivot Point S3	88.9
Daily Pivot Point R1	90.15
Daily Pivot Point R2	90.41
Daily Pivot Point R3	90.77

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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