• The Australian dollar rose vs. the yen, despite a risk-aversion environment.
  • On Tuesday, Asian equity futures point to a higher open, boosting the prospects of risk-sensitive currencies.
  • AUD/JPY Price Forecast: Monday’s candlestick left a large bottom wick, meaning that bulls lifted prices but remain downward pressured unless a daily close above 91.00 is achieved.

The AUD/JPY marches firmly for the second consecutive day but remained below the April 27 swing low of 90.43, amidst a downbeat market mood that faltered to push AUD/JPY prices lower, despite JPY strength. At 90.02, the AUD/JPY is above the 90.00 mark, and the pair is trapped between the 50 and 100-day moving averages (DMAs) at 91.05 and 86.89, respectively.

Sentiment-wise, Asian equity futures point to a higher open, contrarily to New York’s mood, despite investors’ concerns about the Federal Reserve’s pace of tightening monetary policy and China’s economic slowdown, as Industrial Production and Retail Sales shrank, reflecting the impact of covid-19 zero-tolerance restrictions.

During the overnight session, the AUD/JPY opened at around 89.50, daily highs, followed by a dip towards 88.50, as risk-aversion took its toll on risk-sensitive currencies like the AUD, the NZD, and the CAD. However, late in the overlap of the European/North American session, sentiment improved, and boosted the prospects of the Australian dollar, as the Japanese yen, finished as the laggard in the FX space.

AUD/JPY Price Forecast: Technical outlook

The AUD/JPY is neutral-upward biased once the cross-currency pair broke below the 50-DMA to the downside. Now that the pair sits nearby the 100-DMA, that could open the door for further upside price action, as witnessed by Monday’s candlestick, with a large bottom-wick, meaning that AUD/JPY bulls leaned ahead of the 100-DMA around 88.29 and pushed prices higher.

That said, the AUD/JPY’s first resistance would be the 90.00 barrier. Once cleared, the following resistance would be September 2017 daily high at 90.30, followed by the 50-DMA at 91.05. On the flip side, the AUD/JPY first support would be 89.00. Break below would expose the 88.00 mark, followed by the May 12 daily low at 87.30.

Key Technical Levels

AUD/JPY

Overview
Today last price 90.02
Today Daily Change 0.33
Today Daily Change % 0.37
Today daily open 89.66
 
Trends
Daily SMA20 92.08
Daily SMA50 90.85
Daily SMA100 86.78
Daily SMA200 84.32
 
Levels
Previous Daily High 89.72
Previous Daily Low 87.95
Previous Weekly High 92.41
Previous Weekly Low 87.31
Previous Monthly High 95.75
Previous Monthly Low 90.45
Daily Fibonacci 38.2% 89.05
Daily Fibonacci 61.8% 88.63
Daily Pivot Point S1 88.5
Daily Pivot Point S2 87.34
Daily Pivot Point S3 86.73
Daily Pivot Point R1 90.27
Daily Pivot Point R2 90.89
Daily Pivot Point R3 92.05

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bounces modestly after flirting with 0.6900

AUD/USD bounces modestly after flirting with 0.6900

AUD/USD trades around 0.6925 after nearing 0.6900 earlier in the day. The greenback is the daily winner as investors reconsider FOMC Minutes. Federal Reserve officials provided hawkish and optimistic messages, spooking the recession’s ghost.

AUD/USD News

EURUSD on the back foot below 1.0100

EURUSD on the back foot below 1.0100

The EUR/USD pair trades just below the 1.0100 threshold amid the prevalent dollar’s strength. EU confirmed annual inflation at 8.9% YoY in July, while US data was mostly encouraging, except for that related to the housing sector.

EUR/USD News

Gold bearish breakout underway

Gold bearish breakout underway

Gold is losing ground for a fourth consecutive day, trading at fresh weekly lows. The metal suffers from renewed dollar strength, as US data suggest the economy remains resilient to the latest global woes, leaving room for the Fed to maintain its aggressive stance.

Gold News

Top 3 Cryptos Price Prediction: Bitcoin, Ethereum, and Ripple

Top 3 Cryptos Price Prediction: Bitcoin, Ethereum, and Ripple

The crypto market is edging near catastrophe, but the catalyst makers have yet to be triggered. Either sell-off comes soon, or smart money will continue liquidating early bears.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures