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.
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
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.
