AUD/JPY Price Analysis: Reverses from four-month-old resistance amid looming bear cross
- AUD/JPY snaps four-day winning streak, stays pressured around intraday low of late.
- Descending trend line from September 2022 challenges buyers.
- Impending bearish moving average crossover keeps sellers hopeful despite bullish MACD signals.
AUD/JPY takes a U-turn from the short-term key resistance line while snapping four-day uptrend during early Thursday, down 0.45% intraday near 91.10 by the press time. In doing so, the cross-currency pair also teases a bearish moving average crossover on the daily chart.
That said, the 100-DMA knocks the 200-DMA from above and suggests the AUD/JPY pair’s further downside. However, a daily closing of the 100-DMA beneath the 200-DMA becomes necessary to confirm the bearish signal.
Following that, October 2022 low near 90.85 and the 90.00 round figure could lure the pair sellers.
However, a three-week-old ascending support line near 87.70 and the previous monthly low near the 87.00 round figure could challenge the bears afterward.
Meanwhile, recovery moves must provide a daily close beyond the descending resistance line from September, close to 91.60, to convince AUD/JPY buyers.
Even so, a convergence of the aforementioned key moving averages, around 93.20-30 by the press time, appears a tough nut to crack for the bulls.
In a case where AUD/JPY remains firmer past 93.30, the odds of witnessing a run-up towards the October 2022 peak surrounding 95.75 can’t be ruled out.
Overall, AUD/JPY is likely to witness further downside unless the quote crosses the 91.60 hurdle.
AUD/JPY: Daily chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
