AUD/JPY Price Analysis: Dwindles from weekly highs and dives to 94.20s on risk-off mood

FXStreet · 23 Jun 2022 35.1K Views
  • Despite backing away from weekly highs, the AUD/JPY is gaining 0.72% weekly.
  • Risk-aversion abates appetite for risk-sensitive currencies, boosting the JPY.
  • AUD/JPY Price Analysis: Remains upward biased, but sellers are lurking as a rising wedge dawn.

The AUD/JPY recoils from weekly highs as a bearish piercing pattern materializes in the last couple of days’ price action, which tumbles the cross-currency below the 95.00 mark on Wednesday. As the Asian session begins, the AUD/JPY is trading at 94.25, down by a minimal 0.08% at the time of writing.

Asian futures slide late in the New York session, illustrating a dismal mood. Fears that the US might get into a recession and threatens to trigger a more profound global economic slowdown weighed on the AUD/JPY. Additionally, the US Fed Chair Jerome Powell acknowledging the possibilities of causing a recession kept investors uneasy.

AUD/JPY Price Analysis: Technical outlook

Daily chart

The cross-currency stays upward biased, as shown by the daily chart. Nevertheless, AUD/JPY’s Wednesday’s price action shifted negatively in sync with the Relative Strength Index (RSI), crossing below the RSI’s 7-day SMA, indicating that sellers are stepping into the pair. That, alongside a rising wedge surfacing, might open the door for further losses if the AUD/JPY breaks below the wedge’s bottom trendline.

For that scenario to play out, the AUD/JPY bears need to step in and drag prices lower. In that case, the AUD/JPY first support would be the June 22 low at 93.58. A breach of the latter would send the pair slumping towards 93.00, followed by the June 16 cycle low at 91.96.

AUD/JPY Key Technical Levels

Today last price 94.25
Today Daily Change -0.94
Today Daily Change % -0.99
Today daily open 95.15
Daily SMA20 93.55
Daily SMA50 92.49
Daily SMA100 89.52
Daily SMA200 85.97
Previous Daily High 95.32
Previous Daily Low 93.79
Previous Weekly High 94.99
Previous Weekly Low 91.97
Previous Monthly High 94.03
Previous Monthly Low 87.31
Daily Fibonacci 38.2% 94.74
Daily Fibonacci 61.8% 94.37
Daily Pivot Point S1 94.19
Daily Pivot Point S2 93.22
Daily Pivot Point S3 92.65
Daily Pivot Point R1 95.72
Daily Pivot Point R2 96.29
Daily Pivot Point R3 97.26

Affected Trading Instrument

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