AUD/JPY Price Analysis: Slump for the second-straight day, approaches 83.00
- The AUD/JPY snap a two-day gain, down some 0.01% amid a risk-off market mood.
- AUD/JPY Technical Outlook: Bullish biased, though downside risks remain.
As the North American session finishes, the Australian dollar grinds lower for the second time of the week, attributed to dented market mood, as investors assess US central bank rate hikes. At press time, the AUD/JPY is trading at 83.10.
In the meantime, Wall Street stock indices finished the session with losses, between 0.49% and 2.57%, weighing on risk-sensitive currencies like the Australian dollar. Safe-haven peers led by the Japanese yen in the FX complex advanced.
AUD/JPY Price Forecast: Technical outlook
On Thursday, the AUD/JPY pair seesawed between 83.30-50s area, followed by a climb towards the daily high around 83.77, collapsing afterward, near the 83.00 figure. Despite the abovementioned, the pair is neutral-bullish, as the daily moving averages (DMAs) reside below the spot price.
That said, the AUD/JPY first demand zone is the 83.00 figure. A breach of the latter would expose the 200-DMAT at 82.65, followed by the confluence of the 50 and the 100-DMA at 82.35, and then the 82.00 figure.
To the upside, the AUD/JPY first resistance would be the January 10 daily high at 83.36. A clear break above it would expose a four-month-old downslope trendline drawn, from October 2021 highs, near the psychological 84.00 area.
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.
