AUD/JPY Price Analysis: Traders Indecision keeps the pair range-bound, as a dragonfly-doji emerges

The AUD/JPY remained in a choppy trading session, courtesy of a dampened market mood, which increased appetite for safe-haven peers like the Japanese yen, while the Australian dollar awaits crucial data, with inflation figures about to be released on Wednesday, around 01:30 GMT. Nevertheless, the AUD/JPY still recorded minimal losses of 0.07%, but as the Asian session opens, it is trading at 95.08.

AUD/JPY Price Analysis: Technical Outlook

The AUD/JPY daily chart illustrates that Tuesday’s price action formed a dragonfly-doji, meaning buyers/sellers are unsure about the pair’s direction. Helped by the daily moving averages, the AUD/JPY is upward biased, but the uptrend appears to be losing steam, as buyers have been unable to challenge the YTD highs of around 96.88 since June 9. Contrarily, sellers have stepped in and recorded a correction of 5.63% from YTD highs, but the cross-currency aimed towards the 95.00 area and has been unable to crack below July 1 low at 91.42. Hence, the AUD/JPY is neutral biased.

AUD/JPY 1-hour chart

In the near term, the AUD/JPY is also neutral biased. Nevertheless, due to recent price action, it is slightly tilted to the upside, supported by the hourly EMAs, lying below the exchange rate. Besides, the Relative Strength Index (RSI) is in bullish territory and aiming higher, signaling buyers’ momentum is increasing.

Therefore, the AUD/JPY first resistance would be the confluence of the July 26 high and the R1 daily pivot point around 95.27-35. Once cleared, the AUD/JPY’s next resistance would be the July 21 daily high and the R2 pivot at 95.60, followed by the July 20 high at 95.76.

AUD/JPY Key Technical Levels