AUD/JPY Price Analysis: Crucial for AUD bulls to reclaim the 84.00 level
- The AUD/JPY reclaimed the 83.00 price level after dropping beneath it on Friday last week.
- The Asian session market sentiment is mixed, though mild risk-off, as the Japanese Topix is the only gainer.
- AUD/JPY: Crucial for AUD bulls to reclaim the 84.00 figure; otherwise, bears could push the pair towards the upslope support trendline around 81.00.
The AUD/JPY slides as the Asian session begins, trading at 83.18 during the day at the time of writing. The market sentiment is mixed, as Asian equity futures point to a lower open, most of them in the red, except for the Japanese Topix, which climbs 0.61%.
On Tuesday in the New York session, the sentiment was downbeat throughout the session, except for the last hour, when the S&P 500 pared some of its losses. In the FX market, risk-off market sentiment weighed on risk-sensitive currencies like the AUD. However, the safe-haven US dollar benefited from those flows, as the Japanese yen and the Swiss franc weakened.
AUD/JPY Price Forecast: Technical outlook
At press time, the AUD/JPY extended its rally to a two-day gain. As the Asian session begins, the pair is flat, trading above the confluence of the 200 and the 50-day moving averages (DMA’s), that in case of being broken, would compromise the 82.00 level.
In the outcome of the abovementioned, the November 19 swing low at 82.15 would be a medium resistance level. Right under the latter, the 100-DMA at 81.88 would be the last line of defense before giving way to Japanese yen bulls, towards the upslope support trendline that lies around the 81.00 figure.
On the other hand, if AUD bulls, reclaim the 84.00 price level, that would open the door for further gains, with the October 22 pivot low-turned resistance at 84.61. A breach of the latter, would expose the 85.00 figure.
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Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
