AUD/JPY Price Analysis: Bulls reclaim 82.00 though face strong resistance ahead
- The Australian dollar advances vs. the Japanese yen in a risk-off market mood.
- AUD/JPY is neutral biased, but a daily close above the 50-DMA would exert upward pressure on the pair.
The AUD/JPY climbs during the day as the North American session ends, despite a risk-off market mood, which usually favors the safe-haven status of the Japanese yen. At the time of writing, the AUD/JPY is trading at 82.00.
US equity indices finished mixed, led by losses of the S&P 500 and the Nasdaq Composite, down 0.37% and 0.84%, respectively. Meanwhile, the Dow Jones finished flat.
AUD/JPY Price Forecast: Technical outlook
On Monday’s overnight session, the AUD/JPY began the week on the right foot, advancing from daily lows up to daily highs. AUD/JPY price action in the last two days suggests indecision. However, a daily close above the 50-day moving average (DMA) could spur a jump towards the confluence of the 100 and the 200-DMA lying in the 82.40-50 range, respectively.
That said, a breach of the abovementioned confluence would expose AUD/JPY’s January 20 high at 82.97, which, once broken, will challenge a five-month-old downslope trendline around the 83.40-60 range.
On the flip side, AUD/JPY’s first support would be a February 4 daily low at 81.29, stalling downward moves for four straight days. A downward break of it could pave the way for further losses. The next support would be January 24 swing low at 80.69, followed by January 28 low at 80.36.
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
