AUD/JPY Price Analysis: Plummets inside the Kumo, extends its losses past 95.00
- AUD/JPY retraces from 96.06 to 94.67, influenced by central banks' focus on high inflation and a sour market mood.
- The pair has fallen inside the Ichimoku Cloud, suggesting potential further downside with first support at the Kijun-Sen at 94.43.
- The short-term outlook is bearish, but an upward correction towards 94.88 is possible before extending losses past 94.53 to 94.00.
The AUD/JPY retraces from weekly highs of 96.06 extended its losses past the 95.00 figure, spurred by a sour market mood, as global central banks remain focused on tackling sticky high inflation. Hence, the pair dropped 1% or 95 pips on Thursday, and as the Asian session commences, it hovers around 94.67 flat.
The daily chart depicts the pair as neutral biased, but the AUD/JPY has fallen inside the Ichimoku Cloud (Kumo), which could open the door for further downside. The cross-currency pair first support would be the Kijun-Sen at 94.43, followed by an upslope support trendline at 94.30. Once cleared, the next support would be the Senkou Span B at 93.93, followed by the bottom of the Kumo at 93.80.
Short-term, the AUD/JPY pair is in a downtrend, below the Kumo, with price action below the Kijun and Tenkan-Sen lines, respectively. At the same time, the Chikou Span is also below the Kumo and price action, meaning the pair is bearish-biased. However, recent price action suggests an upward correction could be on the cards, with the pair set to edge towards the 50% Fibonacci retracement at 94.88. Once reached, the pair could extend its losses past the September 21 low of 94.53, followed by the 94.00 figure.
AUD/JPY Price Action – Hourly chart
AUD/JPY Key Technical Levels
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.
