AUD/JPY Price Analysis: Erases last week’s gains, refreshes two-week lows around 92.99

AUD/JPY snaps two days of gains, plunges more than 150 pips on risk aversion.
Weaker economic China and US data, drivers of risk-off impulse in the FX space.
AUD/JPY Price Analysis: Falling-wedge in the hourly chart might open the door for a leg-up before resuming the downtrend.

Christian Borjon Valencia FXStreet

After a risk-off impulse in the FX space, the AUD/JPY plunges from around three-week highs around 95.05 and dives towards the 100-day EMA to record its daily low near 92.99 on Monday, courtesy of weaker China and US data, which reignited recession fears. At the time of writing, the AUD/JPY is trading at 93.54.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY remains trading within the boundaries of a descending channel, as portrayed on Monday. The high of the day was also the top-trendline of the previously mentioned channel, in which sellers leaned on to drive prices lower, sending the pair plunging close to 150 pips, near the 100-day EMA. Nevertheless, an uptick in the Relative Strength Index (RSI), and US traders’ sentiment improvement, capped the downtrend, so the pair closed near the August 10 low at 93.48.

Zooming into the 1-hour scale, the AUD/JPY is neutral to upward biased, with the chart portraying the formation of a falling wedge, which would open the door for further upside before resuming its downtrend. Also, to further confirm the previously mentioned, RSI is about to cross over its 7-hour RSI SMA, which would accelerate the uptrend.

Therefore, the AUD/JPY first resistance would be 93.81; once cleared, it would open the door towards the confluence of the 20/200-hour EMA at 93.86, closely followed by the 100-hour EMA at 94.28.

AUD/JPY Hourly chart

AUD/JPY Key Technical Levels

AUD/JPY

Overview
Today last price	93.54
Today Daily Change	-1.36
Today Daily Change %	-1.43
Today daily open	94.98

Trends
Daily SMA20	94.1
Daily SMA50	93.89
Daily SMA100	92.96
Daily SMA200	88.05

Levels
Previous Daily High	95.15
Previous Daily Low	94.38
Previous Weekly High	95.15
Previous Weekly Low	93.21
Previous Monthly High	95.76
Previous Monthly Low	91.42
Daily Fibonacci 38.2%	94.86
Daily Fibonacci 61.8%	94.68
Daily Pivot Point S1	94.52
Daily Pivot Point S2	94.07
Daily Pivot Point S3	93.75
Daily Pivot Point R1	95.29
Daily Pivot Point R2	95.61
Daily Pivot Point R3	96.06

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.

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