AUD/JPY Price Analysis: Struggles to ignore bearish Doji around 94.00
- AUD/JPY remains sidelined after printing bearish candlestick the previous day.
- Bearish MACD signals, sluggish RSI adds strength to the downside bias.
- 50-DMA restricts recovery inside monthly symmetrical triangle, 200-DMA offers additional support.
AUD/JPY steadies near 93.80-85 for the second consecutive day on early Wednesday, after stating the week on a firmer footing. In doing so, the cross-currency pair struggles with the 50-DMA hurdle inside a symmetrical triangle formation comprising multiple levels marked since November 01.
It’s worth noting, however, that bearish signals from the Moving Average Convergence and Divergence (MACD) indicator join sluggish Relative Strength Index (RSI) placed at 14 to keep sellers hopeful. Additionally, the previous Doji candlestick on the daily formation also favors the bears.
However, a clear downside break of the stated triangle’s support line, around 93.40 by the press time, appears necessary for the AUD/JPY bears to retake control. Even so, the 200-DMA level of 92.50 could challenge the quote’s further downside.
Though, the AUD/JPY pair’s successful trading below the 200-DMA will make it vulnerable to testing the previous monthly low surrounding 90.85 before highlighting the 90.00 psychological magnet.
Meanwhile, a daily closing beyond the 50-DMA hurdle surrounding the 94.00 threshold appears necessary for the bull’s conviction. Following that, a run-up towards the aforementioned triangle’s top, close to 94.35, could become imminent.
Should the AUD/JPY bulls keep the reins past 94.35, the monthly high near 95.55 and October’s peak of 95.75 could lure the upside moves.
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.
