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.

Christian Borjon Valencia FXStreet

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

AUD/JPY

Overview
Today last price	97.29
Today Daily Change	0.01
Today Daily Change %	0.01
Today daily open	97.28

Trends
Daily SMA20	94.95
Daily SMA50	94.14
Daily SMA100	93.31
Daily SMA200	89.16

Levels
Previous Daily High	97.4
Previous Daily Low	96
Previous Weekly High	96.2
Previous Weekly Low	94.71
Previous Monthly High	96.2
Previous Monthly Low	90.52
Daily Fibonacci 38.2%	96.87
Daily Fibonacci 61.8%	96.54
Daily Pivot Point S1	96.39
Daily Pivot Point S2	95.5
Daily Pivot Point S3	94.99
Daily Pivot Point R1	97.79
Daily Pivot Point R2	98.3
Daily Pivot Point R3	99.19

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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