AUD/JPY Price Analysis: Slips from weekly highs on risk-off impulse, further downside expected
- AUD/JPY retreats from its weekly high of 92.01 and trades lower as the Asian session opens.
- The AUD/JPY break below the Ichimoku Tenkan-Sen at 91.55 cleared the path toward 91.00.
- For a bullish continuation, the AUD/JPY must claim 91.55; otherwise, a fall below 91.10/90.85 will expose 90.00.
AUD/JPY retraces from weekly highs of 92.01, drops for two straight days, on sentiment deterioration sponsored by US debt-ceiling woes, as traders brace for the release of the Australian Consumer Price Index (CPI). As the Asian session begins, the AUD/JPY is trading at 91.06, down 0.04%.
AUD/JPY Price Analysis: Technical outlook
From a daily chart perspective, the AUD/JPY is neutral to downward biased after falling below the Ichimoku Tenkan-Sen pierced at 91.55, exacerbating the fall toward the 91.00 figure. A one-month-old upslope support trendline was also broken, suggesting sellers are stepping in.
Even though the AUD/JPY is tilted downwards, a seven-month-old previous resistance trendline turned support, suggesting congestion around the 90.85/91.10 area. If AUD/JPY breaks below that area, the next support would be the Kijun-Sen line at 90.15, ahead of testing a support trendline has passed at around the 90.00 figure. Once cleared, the next support would be the top of the Ichimoku Cloud at 89.55.
Contrarily, the AUD/JPY must claim the Tenkan Sen line at 91.55 for a bullish continuation, triggering a rally toward the 92.00 figure. A breach of the latter will expose the year-to-date (YTD) high at 92.99.
AUD/JPY Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
