AUD/JPY Price Analysis: Failure to break under 92.50 lifts the pair towards 93.00

The AUD/JPY recovers some ground after falling for two consecutive days as the Asian Pacific session begins. The AUD/JPY is trading at 92.81 amidst an upbeat market mood, portrayed by Asian equity futures trading in the green.

US equities ended the session in a mixed mood, contrary to the Asian market futures, which point to a higher open. So far, market players have put aside Russia-Ukraine woes, despite Russian Foreign Minister Lavrov complaining that Ukraine’s new draft agreement presented to Russia does not fulfill Russia’s demands on Crimea and Donbas. Also, late reports stated that Russia is regrouping troops as they prepare to launch another offensive aiming to seize the Eastern regions of Ukraine, Donetsk, and Luhansk.

AUD/JPY Price Forecast: Technical outlook

The AUD/JPY is upward biased, but failure at 94.00 exposed the pair to selling pressure. Additionally, momentum indicators like the Relative Strength Index (RSI) at 70.745 made a successive series of lower highs, contrarily to AUD/JPY price action, with subsequent series of “quasi” same highs, forming a “double-top” chart pattern. Moreover, a negative divergence between price action and RSI would send the pair lower.

Even though the Relative Strength Index (RSI) at 70.76 remains in overbought levels, it portrays a horizontal slope, meaning that the AUD/JPY might consolidate as traders assess the direction of the pair

That said, the AUD/JPY first resistance would be 93.00. A breach of the latter would expose the R2 daily pivot at 93.60, followed by the 94.00 mark. On the flip side, the AUD/JPY first support would be 92.26. A decisive break would expose the 91.00 mark, followed by the “double-top” neckline at 90.76.

Technical levels to watch