AUD/JPY Price Analysis: Trades sideways around 91.70s despite an upbeat mood

The AUD/JPY fluctuates as the Asian session begins, registering minuscule gains of 0.07%, exchanging hands at around 91.73. A risk-on impulse bolstered the Australian Dollar(AUD), while the Bank of Japan’s (BoJ) newly appointed Governor Kazuo Ueda’s dovish comments were a headwind for the Japanese Yen (JPY).

With the AUD/JPY bottoming around the 91.30 area in the last couple of days, price action is contained within the confluence of all the daily Exponential Moving Averages (EMAs) around the 91.57-89 area. Furthermore, the AUD/JPY is trading sideways as the Relative Strength Index (RSI) shifts flat, meaning buyers and sellers are at equilibrium.

If the AUD/JPY clears the top of the range, the next resistance would be 92.00. A breach of the latter will expose the February 21 high at 93.00, followed by the December 13 high at 93.35. Once reclaimed, the AUD/JPY’s next stop would be the psychological 94.00 barrier.

As an alternate scenario, sellers would exert downward pressure on the pair if the AUD/JPY clears a one-month-old upslope support trendline. The AUD/JPY  first support would be the 91.00 figure. Break below, and the pair would fall toward the February 10 swing low at 90.22 and then the 90.00 psychological level.

AUD/JPY Daily chart

AUD/JPY Key technical levels