AUD/JPY Price Analysis: Negative divergence to send prices towards 96.20
- AUD/JPY prepares to finish the week with gains close to 1.90%.
- Negative divergence in the daily chart opened the door for an AUD/JPY fall towards 96.20.
The AUD/JPY finishes the day, forming a doji after dovish remarks by the RBA Governor Philip Lowe weighed on the Australian dollar, which weakened against most G8 currencies. At the time of writing, the AUD/JPY is trading at 97.27, slightly below its opening price, as the Asian Pacific session begins.
AUD/JPY Price Analysis: Technical outlook
On Thursday, the AUD/JPY reached a fresh YTD high at 97.49 before tumbling towards the daily low at 96.63. However, late in the North American session, AUD/JPY buyers pushed the pair above the 97.00 thresholds, finishing Thursday’s session at 97.27.
AUD/JPY traders should be aware that the Relative Strength Index (RSI) turned flat, at 68.88, before entering overbought conditions, flashing signs of negative divergence between RSI and AUD/JPY price action.
Therefore, the AUD/JPY might be headed to the downside. The AUD/JPY first support would be the September 8 low at 96.62. Once broken, the next demand zone would be the September 7 daily low at 95.99, followed by the September 6 low at 95.48, before reaching the weekly low at 94.98.
AUD/JPY Key Technical Levels
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.
