AUD/JPY Price Analysis: Has further downside room as sellers approach 92.00
- AUD/JPY holds lower ground at weekly bottom, stays pressured for the fifth consecutive week.
- A clear U-turn from 50-DMA, downside break of the five-month-old support line keeps sellers hopeful.
- 200-DMA, August month’s low lure bears unless the quote remains below 94.70.
AUD/JPY remains on the back foot at the eight-day low, near 92.35 amid Monday’s Asian session, as sellers keep reins during the fifth consecutive week.
In doing so, the bears cheer the previous week’s pullback from the 50-DMA, as well as a clear downside break of the upward-sloping trend line from May, amid bearish MACD signals and the RSI.
With this, the bears are all set to poke the previous monthly low surrounding 92.10 before challenging July’s bottom near 91.40.
However, the 200-DMA and the lows marked in August, respectively near 90.70 and 90.50 in that order, could challenge the AUD/JPY bears afterward.
In a case where the pair sellers break the 90.50 support, the 90.00 psychological magnet may test the further downside.
Alternatively, the support-turned-resistance line, around 93.25, guards the AUD/JPY pair’s immediate recovery moves ahead of the 50-DMA level of 94.70.
Following that, late September’s swing high near 96.55 and June’s peak of 96.88 may probe the bulls before directing them to the recently flashed multi-month top of 98.60.
AUD/JPY: Daily chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
