AUD/JPY Price Analysis: Double bottom at risk as the spot tumbles to 91.10s

• AUD/JPY formed a doji in the daily chart, suggesting buyers lost momentum.
• The confluence of the 200-DMA and the 100-DMA, around 91.55/65, stalled the AUD/JPY uptrend.
• AUD/JPY double bottom is still in play, at risk of invalidation if the cross drops below 91.00.

After printing a doji on Tuesday, the AUD/JPY registers minuscule gains of 0.03% as Wednesday’s Asian session begins, though it remains around Tuesday’s close of 91.10. At the time of writing, the AUD/JPY is trading at 91.13.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY failed to crack the 200-day Exponential Moving Average (EMA) at 91.65 for two consecutive days and, after printing a weekly high of 91.82 on Monday, slid toward the 91.10s area. Tuesday’s price action formed a doji, usually a bearish signal, which could open the door for a test of the 20-day EMA in the near term.

AUD/JPY traders should know that the double bottom remains in play. However, a fall below the December 28 daily high of 91.05 could invalidate the chart pattern.

AUD/JPY support rests at 91.05. A break / close below the latter will expose the 20-day EMA at 90.54, followed by last Friday’s swing low of 90.01.

As an alternate scenario, the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest some buying pressure is building. Therefore, the AUD/JPY resistance levels lie at the 200-day EMA at 91.65, followed by the 92.00 figure and the December 13 daily high of 93.35.

AUD/JPY Key Technical Levels