AUD/JPY Price Analysis: Remains trapped between two key averages, awaits a range breakout
- AUD/JPY drops to test the 50-HMA, as sellers take over.
- Upside remains capped by the 21-HMA amid risk-off mood.
- RSI trades flat at the midline, suggesting a lack of clear direction.
AUD/JPY is lacking a clear directional bias after receding from higher levels, as the risk-off sentiment seeps back in Asia, with the S&P 500 futures down 0.20%.
The upbeat Chinese inflation figures failed to rescue the AUD bulls, as resurgent haven demand for the US dollar dominates ahead of the critical CPI and stimulus vote.
Markets also digest the latest cautious remarks from the RBA Governor Phillip Lowe, as he said earlier on that the board is to consider extending the bond purchase programme.
From a short-term technical perspective, as observed on the hourly sticks, the price is capped between the two key hourly moving averages (HMA), with the upside capped by the 21-HMA at 83.69 while the 50-HMA at 83.50 cushions the downside.
The relative strength index (RSI) trades listless, right at the midline, adding credence to the indecisive mood around the cross.
A breakout in either direction could be in the offing in the near-term, although with the dour risk sentiment, a break below the 50-HMA looks more compelling.
The bears remain poised to test the 200-HMA at 83.26.
On the flip side, above the 21-SMA resistance, the daily high at 83.88 could be back on the buyers’ radars.
AUD/JPY: Hourly chart
AUD/JPY: Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
