AUD/JPY Price Analysis: Retraces from around 92.30s on dampened mood
- AUD/JPY trimmed earlier gains on Tuesday, down by 0.34%, extending its weekly losses.
- Sentiment dampened on BoE’s Governor Bailey’s commentary about UK pension funds.
- The AUD/JPY bearish flag remains in play, targeting the 200-day EMA at 90.70.
The AUD/JPY retraced its earlier gains and tumbled on Tuesday, as the Bank of England’s (BoE) Governor Andrew Bailey spooked investors, which dumped every asset with the “risk” word attached to it, so in the FX space high beta currencies. Therefore, the AUD/JPY dived from daily highs above 92.00 to current exchange rates. As the Asian Pacific session begins, the AUD/JPY is trading at 91.54, slightly up 0.09%, at the time of writing.
AUD/JPY Price Forecast
The AUD/JPY daily chart portrays the cross-currency as neutral-to-downward biased. The bearish-flag pattern broke to the downside as expected but fell short of reaching the 200-day EMA target of 90.70. Notably, the AUD/JPY was headed upwards, reaching 92.32, Tuesday’s high, in an upbeat mood, but BoE’s Bailey words turned sentiment sour. AUD/JPY key support levels lie at 91.00, followed by the 200-day EMA at 90.70, which, once cleared, could open the door towards a test of the 90.00 figure.
On the other hand, if AUD/JPY buyers reclaim the 92.00 figure, the first resistance area would be October’s 10 high at 92.76, followed by the 93.00 figure, nearby the bearish-flag bottom trendline.
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.
